NEW YORK: Months of calm in U.S. stocks gave way to a surge in activity in the options market on Tuesday as investors spooked by escalating trade tensions between the United States and China boosted Wall Street's so-called fear gauge to the highest level in three months.Advertisement
U.S. officials have accused China of backtracking in the past week on substantial commitments made during months of negotiations aimed at ending their bruising trade war, prompting President Donald Trump to issue a Friday deadline to raise tariffs on US$200 billion worth of Chinese goods to 25 percent from 10 percent.
A lot of the activity was concentrated in contracts that expire by the end of the week, which corresponds to Trump's Friday deadline for additional tariffs. "Aggressive positioning does not become a volatility catalyst, but if you get a volatility catalyst the short covering becomes a magnifier of the move," Purves said.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BusinessTimes - 🏆 15. / 51 Read more »