After a soft finish yesterday, selling pressure kicked in on the European open due to reports the White House is considering additional tariffs on the E.U. and U.K.
Quadruple witching typically brings volatility in its aftermath as positions are unwound. Ahead of the Federal Reserve meeting last week, we called for this date to bring a cleansing.
U.S. equity benchmarks shook off a brief bat with reinvigorated volatility yesterday morning. After a blowout MoM May Retail Sales read, price action in the S&P 500 surged to its high of the session (YoY was -6.1%)
U.S. equity benchmarks opened sharply lower Sunday night and the weakness continued into Europe’s open after a slew of weaker than expected economic data from China.
Risk-assets are keying off a reality that has been clouded by trillions upon trillions of added liquidity. The Federal Reserve’s balance sheet has now surpassed $7 trillion.
