(Posted Singapore time 430 am)
Global markets fell Thursday from Asia to US closing.
The volatility index, CBOE VIX surged from early 30s to mid 40s. If you are using VIX as a tool to trade, be very cautious when it reaches 50. The weather has changed for the worst. I would suggest not holding positions over this weekend.
China manufacturing data came in weak. Coupled with a decline in Europe’s private sector activity, the preliminary EZ composite PMI dropped to 49.2 pointing to its first decline in two years. These two data just seal another nail to the coffin.
Before US closing, Wall Street fell 4%, was down more than 500 points at one stage, broke the 10,600 level before bouncing back up (10750).
The primary beneficiaries this week are Treasuries and the US dollar reaching a high of 79.4 before reversing course to 79 figure.
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