Aside the booming headlines of an impressive sell-off in financial markets, this week’s news has been dominated by Greece’s return to the international debt market. Whilst the US equity sell-off has at least appeared explainable – broad market valuation is high, and we are are entering an earnings season that will again likely fail to deliver escape velocity – the tone on Greece’s bond issuance has been bizarre. Continue reading
Flash Boys has lit a fire, long waiting to be lit. Plenty of market participants have been seeking explanation for unexplained phenomena such as the “Flash Crash” for years. For me it began with the wild market swings of August 2007, when the algo traders suddenly had to turn off their systems to dramatic effect.
I’m reading the book, and will save judgement on whether I agree that the market is rigged. But here’s round one of the debate, Continue reading
Equity markets performed well for most of last week, enough so to close out with healthy gains across the board. The mood was clearly risk on, right up until Friday, when the US opened strongly following Europe, only to enter a massive fade out, led down by the momentum stocks that have been leading the market for the best of the rally.
Today, Asia and Europe are playing catch up to the “worry trade” and US futures are looking to open lower. What’s going on? Continue reading