Volatility-linked funds estimated to be buying as much as $2 billion in U.S. equities daily are helping drive this year's rebound in stocks and may ramp up purchases in coming weeks, though a hawkish Federal Reserve could spoil the party.
"As we think that technical factors may have played a large role in the market performance so far this year, we expect this to eventually wane as fundamental factors resume the dominant position as market drivers," Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note on Tuesday.Investors said conditions were supportive of a rally at the beginning of the year. The S&P 500's 19.
Volatility control funds have raised their equity allocation to a nine-month high of 57.7%, strategists at Deutsche Bank wrote on Friday. While that is modest relative to the roughly $34 trillion value of the S&P 500 alone, such funds bear watching since they buy in rising markets and sell when stocks tumble, and can potentially exacerbate downside moves as well as rallies.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Hawkish Fed messaging should help boost yields and the Dollar – BBHEconomists at BBH expect a 25 bps hike and a very hawkish tone from the Fed. With risks to U.S. rates weighted to the upside, the dollar is likely to
Baca lebih lajut »
USD/INR Price News: Brace for sheer volatility ahead of Indian Union Budget/Fed policyUSD/INR Price News: Brace for sheer volatility ahead of Indian Union Budget/Fed policy – by Sagar_Dua24 USDINR Fed FiscalPolicy Inflation Volatility
Baca lebih lajut »
GBP/JPY declines towards 160.00 despite hawkish Bank of England betsThe GBP/JPY pair sensed selling interest after a pullback to near 160.60 and is declining toward the round-level support of 160.00 in the early Tokyo
Baca lebih lajut »
Devils’ front office excited about goalie success this season, cautious due to past ‘volatility’New Jersey Devils goaltenders have a .907 save percentage this season – the 10th-highest in the NHL.
Baca lebih lajut »
Gold Price Forecast: XAU/USD could retest $1,900 but buyers may re-emerge, spurring volatilityGold price holds its recent range after testing the $1,900 mark on Tuesday. In the view of FXStreet’s Dhwani Mehta, XAU/USD appears ‘buy the dips’ tra
Baca lebih lajut »
There is a certain underlying volatility that escapes any form of explanation – CommerzbankMonth-end flows dominated markets. In the view of economists at Commerzbank, there is a certain underlying volatility that escapes any form of explana
Baca lebih lajut »