Though US investors are preventing each other off to invest in stocks (properly FANG shares), Chinese and European equity markets have endured in new months amid expansion issues and trade war fears.
One may possibly not know it seeking at the Euro Stoxx 50 Volatility Index hovering just hardly in the double digits…
But, as Bloomberg’s Benjamin Dow notes, more substantial prices swings could be coming to European stocks this month as volumes dry up.
Even by August specifications, it is really unusually tranquil. The very last time Stoxx 600 volumes’ 15-DMA for this distinct day was reduce was in 2000:
It could be an ominous signal for all those who are betting on a quiet stop to the month, amid many macro stormclouds like Sino-U.S. trade jabs, U.S. politics (sanctions and mid-phrase elections), Italy-EU finances battles, and Brexit.
As Dow warns, an anomalously fast paced start to the month in conditions of macro newsflow blended with very low volumes could effectively established the phase for fireworks.