Spreadex Market Update

Sell-off witnessed across the globe 



Today acts to confirm earlier fears, that is to say the sentiment in the market has changed. The sell-off being witnessed across the globe over recent sessions supports the central argument that the period of stable returns, devoid of uncertainty over the Fed's outlook, is over. The market has likely entered a new phase as a result.

Participants now spend their time reacting to any snippet of interest rate relevant information in an attempt to position themselves. But volatility has remained relatively low given the recent price action, allowing for at least some positivity.

Implied volatility being at its current levels argues that investors have not yet arrived in their droves searching for insurance. This is a very different situation to, say, when the market was faced with eurozone fears. Indeed, this market is in danger of getting less expensive rather than becoming very cheap as it did when the collapse of a monetary union was feared.

DISCLAIMER


Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.

Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.

No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.

The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.