“This Looks More Frightening”: Global Stock, Bond Selloff Accelerates Amid Risk-Parity Rumblings
by Tyler Durden
ZeroHedge.com
Nov 10, 2017
Yesterday’s Japan flash-crash inspired selling continues for a second day, with global equities – and bonds – sliding early Friday on concerns U.S. tax reform – and corporate tax cuts – will be delayed after Senate Republicans unveiled a plan that differed significantly from the House of Representatives’ version. After suffering their biggest plunge in 4 months on Thursday, European stocks failed to find a bid along with Asian stocks, while U.S. index futures pointed to a lower open (ES -0.5%, or -10), the Nikkei 225 ended 0.8% lower, Treasuries yields are up 1-4bps across the curve in steepening fashion, with the 10y at 2.370%, while the Bloomberg Dollar Spot Index declined for a third day. The VIX has jumped 6% this morning trading through 11 while WTI crude oil is little changed trading north of $57/bbl.
And here is one for the streak watchers: on Thursday the global MSCI index failed by one day to post its longest winning streak since 2003 as it fell 0.4% following 10 days straight of gains. The MSCI world index gained more than 18% so far this year and some investors believe a pullback is due. “I think there’s a feeling out there that there’s a long awaited correction, and no one wants to be caught by surprise,” said Emmanuel Cau, global equity strategist at JP Morgan. “When the market is down a bit people tend to extrapolate. But I think it’s simply a bit of profit taking and digesting from a very strong September and October.”
Europe’s benchmark Stoxx 600 reversed an early rebound, falling 0.2% on high volume; It is on track for its worst week in three months, if it falls on Friday , its fourth drop in row. Carmakers and retailers led the index to its biggest two-day drop since August as third-quarter earnings season continues, with aerospace-electronics maker Leonardo SpA crashing 20% after cutting sales forecasts.
The Rest…HERE
