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VIX Rules Over Financial Markets Once Again

Published 08/18/2017, 02:33 AM
Updated 07/09/2023, 06:31 AM
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US indices closed the day in the red area as the economic data followed a mixed journey and FED presidents increased the probability of not having a rate hike at a close time.

The attacks in Barcelona also supported the decline in US indices which increased the S&P 500 VIX by 32.45% to 15.55. It is the second significant increase in the growing tension between the US and North Korea which was about 40% up.

As the demand for the safe harbours became great, the U.S. 10-Year government rates failed to catch it. It shows the internal stress in the US decreased the confidence in Trump as the probability of his promises about the economy starts to fade away.

Parallel to the grown volatility in financial markets, the Asian VIX indices such as KOSPI Volatility, CBOE China ETF Volatility and India VIX increased significantly. USD/JPY gained strength, and the Japan 10-Year rates pulled back by growing demand for safe assets.

Asian markets followed a course in the red area due to the volatility in the markets.

The sell-off in the Asian sides is expected to be seen in the TRY and other emerging market assets. Therefore, there is a strong possibility for a negative opening and trading day.

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