The change in investor tone followed not only the escalation on tensions between the USA and North Korea, with President Donald Trump warnings that his “fire and fury” threat might not be “tough enough” to dissuade Pyongyang from “disrespecting our country”, but also a string of all-time highs for US and global equities.
USA stocks rose on Friday, closing higher in a modest rebound from the previous session, though major indexes ended sharply lower on the week as geopolitical uncertainty continues to weigh.
This morning global stocks declined for the second day in a row, with the FTSE 100 falling 0.8 per cent to 7,327 points in early trading, while the Dax fell 0.2 per cent and the Cac 40 fell 0.6 per cent. In this part, we’ll have a look at the volatility index. “With earnings season nearly over, worry over North Korea may have ignited a well-overdue period of greater market volatility”, he said.
The 15-day streak of narrow moves in the S&P 500 came to an end on Thursday with the benchmark index closing down 1.45%.
VelocityShares Daily Short Term VIX Futures ETN (NYSEARCA:TVIX) TVIX is a leveraged VIX ETN created to deliver 2X the returns of the daily S&P 500 Short Term Futures Index. TVIX advanced 5.3%.