Spreadex Market Update

Equity markets hurt



Equity markets are getting hurt today, with most of the damage being done to mining stocks.

The fears concerning a materially slowing china and a weakening commodities super-cycle are manifesting through the continued underperformance of basic materials.

Here in London, KMR and KAZ are the most heavily hit, down by 6.7% and 4.4% respectively.

Increased fears over the Eurozone are likely to compound selling but they are no more concerning today than yesterday; the Spanish economy was expected to contract.

The bigger picture here to be considered by investors remains: will disappointing earnings continue to propel risk appetite lower and volatility higher?

If so, participants are likely to pay over the odds for protection, such as treasuries and dollars.

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