Let’s see. Manufacturing in the world’s biggest economy ground to a halt in January. The benchmark Treasury yields is at its lowest in three months and stock indexes can’t hold onto earlier signs of a rally. So then that likely puts the CBOE Volatility Index at a sky high reading of 20.0.
The U.S. Federal Reserve decided to withdraw $10 billion from its monthly purchases in spite of the global concerns and the slowdown in emerging markets and that concerned investors are now left “wondering” what the next “shoe to drop” will be.
Equity index futures are slumping Friday as investors digest the impact of emergency rescue measures by emerging market central banks whose priority it is to alleviate pressures on domestic currencies.