Volatility Archives - Zxcoachoutlet

U.K. Urges Finance Execs to Prep For Market Volatility on Brexit

October 9, 2020

(Bloomberg) — The U.K.’s two financial regulators urged the industry to finish final preparations for a potentially messy no-deal Brexit.

© Bloomberg
A London bus crosses Waterloo bridge against a backdrop of skyscrapers including 22 Bishopsgate office tower, the Leadenhall building, also known as the “Cheesegrater”, The Scalpel, and 20 Fenchurch Street, also known as the “Walkie-Talkie” in the City of London, U.K., on Wednesday, Jan. 29, 2020. The European Union will consider about 40 equivalence decisions this year, determining how much equity, fixed-income and other investment banking business can remain in London and still serve EU clients.

With negotiations between the U.K. and European Union still facing roadblocks, the Bank of England and Financial Conduct Authority urged finance executives to take further steps to make sure U.K. firms can continue trading stocks and derivatives easily with EU clients.

“Market volatility and disruption to financial services, particularly to EU-based clients,

EMERGING MARKETS-Argentine peso slides as central bank allows more volatility; Mexican peso up

October 2, 2020

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By Susan Mathew

Oct 2 (Reuters) – Argentina’s peso dropped on Friday after the central bank said it would allow a managed float of the currency, while most other Latin American units fell as global sentiment took a hit after U.S. President Donald Trump tested positive for the novel coronavirus.

The Argentine peso ARS=RASL led losses with the bank saying it would abandon its current “uniform daily devaluations and introduce greater volatility” as the gap between the official exchange rate and the rate quoted in informal currency markets widened close to 93%.

The bank said it would offer trades at 76.95 pesos per dollar at Friday’s open, around 0.91% weaker than the close on Thursday. It also increased the important overnight repo rate to 24%, from the current 19%.

“Even if the number of measures announced is not low, we do not expect them to change the current dynamics.

Carry-Trade Laggards May Win Out in Era of Low Volatility

September 29, 2020

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(Bloomberg) — When the recent spike in volatility starts to ease, watch for these unlikely candidates to emerge as potential carry-trade winners: the low-yielding South Korean won and Malaysian ringgit.

That’s according to a Bloomberg study of 10 emerging-market currencies looking at how current volatility compares with levels prevailing in the last period of super-low interest rates in 2012 and 2013. The analysis found fluctuations in the won and ringgit were closest to the lows from that time, meaning they offer a greater chance of dropping back even further and delivering more stable returns as carry-trade targets.

chart, bar chart: Lower Is Better

© Bloomberg
Lower Is Better

At the same time, a rush among central banks around the world to cut interest rates to combat the coronavirus has compressed the extra yields offered by countries such as Brazil, Indonesia and South Africa. This is reducing the allure of the more typical favorites for carry trades,

Top ETF Areas Amid Last Week’s Volatility

September 28, 2020

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Last week was volatile for Wall Street with the S&P 500 and the Dow Jones losingabout 0.6% and 1.8%, respectively. The Nasdaq has gained 1.1% past week. Though the Nasdaq was volatile earlier in the week, it ended it on a positive note. The Nasdaq’s gain of about 2.3% on Sep 25 was its biggest since Sep 9, as tech stocks rebounded from their recent declines.

Doubts over the faster rollout of coronavirus vaccines, rising COVID-19 cases in the United States and Europe, talks of major banks engaging in transferring illicit funds, profit booking on tech stocks and pre-election volatility in the United States have spelt trouble for the markets. Dr. Anthony Fauci, leading infectious disease expert, recently commented that a “large proportion” of the United States will not receive the vaccine in 2020, per a CNN report (read: “Worst September in 18 Years”? 4 Sector ETFs Surviving Selloffs).

Against

Global Stocks Still An Overweight Despite Election Year Volatility, Covid Chaos

September 28, 2020

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US STOCKS — Central banks have provided unprecedented support for the securities markets. Photographer: Michael … [+] Nagle/Bloomberg

© 2019 Bloomberg Finance LP

Global equities are still going to be an overweight heading into the fourth quarter, regardless of uncertainties and strains surrounding the way governments are now managing the pandemic, and an election nearly everyone now assumes to be hotly contested.

Thanks to central bank backstops, of course, and the fact that everyone also sees next year as roaring back to life, economically speaking, stocks are still the place to be, Barclays Capital is telling its clients.

The world economy has come back strongly, led by China in the emerging world, and the U.S. in the developed one.

“U.S. election-related uncertainty is a major risk, but with vaccine approval likely by year end, and a strong recovery, we still prefer global equities over fixed income,” says Ajay Rajadhyaksha, BarCap’s head of rates