Trade24Fx

Chaos and Anarchy in Financial Markets

Short
TVC:SPX   S&P 500 Index
Yesterday, the financial markets were hot and not boring. And if in recent days this has more to do with commodity markets, or rather energy products, then yesterday it was decidedly volatile everywhere.

Moreover, there was still a swing on the commodity markets: at first, the tendencies of hysterical growth in prices for natural gas, which pulled oil along with it, continued. As a result, gas prices have updated everything that could be updated and have reached quite exorbitant heights. But as often happens, the higher you go, the more painful it is to fall.

As a result, growth was unexpectedly replaced by a fall, which can be attributed to both the general unsteady base for growth (panic) and profit-taking on long positions (there was something to fix).

In general, there is a feeling that investors were not very comfortable yesterday in risky assets. And, indeed, the general fundamental does not in any way have an increase in demand for risky assets: China did not have time to recover from Evergrande, as it had to close production due to a lack of electricity, Yellen in Congress again frightens the US by default and even calls the day "X" - On October 18, the FRS is clearly preparing to tighten monetary policy, there is also this energy crisis. It is difficult to imagine who will buy with such a background, and even at such exorbitant prices.

In general, the stock market fell yesterday after the commodity ones. And this is logical. That's where he is dear. The sell-off in the US stock market was partially facilitated by the growth in the yield of US Treasury bonds, which are either discounted under the tightening of the FRS monetary policy, or are preparing for a US default.

Even the very optimistic OPEC report, in which the cartel predicted a sharp increase in demand and a bright future for the oil market in the next few years, did not help oil yesterday. However, an unexpected rise in US oil inventories (according to API data) is definitely a bearish signal for the asset.

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