There is a clear risk aversion in the market
We are observing a very interesting situation on the markets, in fact an anomaly. The return of the United States to the market after yesterday's holiday did not manage to lift market sentiment, even despite a significant drop in yields. Now the question arises, is the fall in bond yields related to the increase in risk? This is clearly indicated by the rebound of the VIX index.
The price of crude oil has dropped significantly. As you can see, the lack of an OPEC + agreement is negatively treated by the markets. Some market participants even expect that the entire agreement related to the reduction of production may even collapse due to the lack of agreement. Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Gold moved significantly lower, despite higher TNOTE (decline in bond yields) and significant strengthening of the US dollar. Has the Covid risk returned to the market? It is worth noting that gold is returning below the upper limit of the recent consolidation zone . Source: xStation5
Today we are seeing the biggest correction on the S&P 500 since the last upward impulse from June 21, moreover, we are seeing significant increases in the VOLX index. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
