Market Volatility

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Market Volatility

Economy, Stock Market  |  September 9, 2016  |  
george clark

The weakness in the financial markets today is a result of Central Bank policy concerns:

  1. ECB Chief Draghi deferred (for now) on incremental easing measures
  2. Fed governor jawboning has driven up the odds of September rate increase (per chart below)

graph-for-post-09092016

Source: Bloomberg

Interestingly, both stocks and bonds are down in value today. In contrast, volatility figures have spiked from low levels and likely will remain elevated leading up to the September 21st Fed decision release.

 

 

 

 

 


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