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Tag: market

Bets on low market volatility went spectacularly wrong

Bets on low market volatility went spectacularly wrong

Finance
THE Cboe Volatility Index, or Vix, known as the “fear gauge”, spikes when markets are most jittery. When Sandy Rattray, now at Man Group, an asset manager, worked on the Vix in the early 2000s, he and his team considered launching an exchange-traded product (ETP) linked to it, but concluded that it would be a “horror show” because of poor returns. Now, however, Vix-linked ETPs are a big industry, with around $ 8bn in assets. Formerly niche investments, they served vastly to exacerbate this week’s market turmoil, which saw the Vix’s largest ever one-day move, when it more than doubled on February 5th.The Vix was always intended as a basis for financial products as well as a gauge. Vix futures were launched in 2004 and options in 2006. “Long” Vix products, which Mr Rattray looked into, seek
How to interpret a market plunge

How to interpret a market plunge

Finance
FOR much of the past two years, market watchers have had little to write about, apart from the passing of one stock-index milestone after another. The events of the past week, however, have shaken the financial world awake. A recent, upward zag in bond yields seemed to signal the arrival of a new theme in market movements. Stock prices confirmed it, and then some. Over the past week, American stocks have dropped about 7%, punctuated by a breathtaking, record-setting plunge on Monday. The Dow Jones stock index recorded its largest ever one-day drop, of more than 1,000 points. In percentage terms the decline, of more than 4%, was the biggest since 2011.The swoon set tongues to wagging, about its cause and likely effect. There can be no knowing about the former. Markets may have worried that ...
Market tumble lessens market fears of Fed rate hike

Market tumble lessens market fears of Fed rate hike

Finance
Monday's stock market plunge dimmed traders' outlook that the Federal Reserve will raise interest rates as much as it has indicated.Just a few weeks after the market finally had come around to the Fed's way of thinking that three quarter-point rate hikes would be appropriate this year, the day's trading changed sentiment. Traders on the fed funds futures market now are indicating a less than 50 percent chance that the central bank will move three times this year.That move came on a day when the Dow industrials saw their biggest intraday drop ever — a harrowing 1,500 point plunge that came amid worries over rising interest rates."If this market's going to behave like that that's going to put into question three to four hikes this year," said Ilya Feygin, senior strategist at WallachBeth Cap
Ex-Barclays CEO Jenkins ‎eyes stock market return

Ex-Barclays CEO Jenkins ‎eyes stock market return

Business
Antony Jenkins, the former chief executive of Barclays, is lining up a return to the stock market at the helm of Currencies Direct, the foreign exchange and international payments group.Sky News has learnt that the owners of Currencies Direct have opened talks with bankers about a potential listing of the company later this year.The plans are at an early stage, with no fixed timetable as yet, City sources said on Friday.If they pursue the idea of an initial public offering, Corsair Capital and Palamon Capital Partners will engineer Mr Jenkins' stock market comeback three years after he was ousted by Barclays.Mr Jenkins has since rebuilt his career, establishing a financial technology platform called 10x, which is building a new digital bank for Virgin Money.He joined Currencies Direct in 2...
Banks charged in US over market 'spoofing'

Banks charged in US over market 'spoofing'

Business
US authorities have filed civil and criminal charges against three European banks and eight individuals for alleged manipulation in US futures and commodities markets.The lenders - UBS, Deutsche Bank and HSBC - agreed to pay $ 46.6m to settle the cases brought by the Department of Justice (DoJ) and the Commodity Futures Trading Commission (CFTC).It follows a large-scale investigation into so-called "spoofing" in metals and equities futures.One of the eight named by the DoJ was James Vorley, 37, of the UK. He was said to have been based in London and employed as a precious metals trader at a leading global financial institution.The department stressed that all defendants were "presumed innocent until proven guilty beyond a reasonable doubt in a court of law".The case centres on allegations ...