Sr. Correspondent, Broker Research, Bangalore, India
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Sep 17, 2015

Analysis – Fed decision unlikely to calm markets, fund managers say

NEW YORK (Reuters) – The global market volatility that upended investors over the last six weeks may last deep into autumn now that the Federal Reserve has decided to keep interest rates unchanged, several equity and fixed income portfolio managers said on Thursday.

The Fed has not raised interest rates since 2006 and investors are concerned that a further delay will keep markets on edge, as analysts try to interpret how data points ranging from Chinese retail sales to commodity prices will influence the central bank’s next move.

Sep 17, 2015

Fed decision unlikely to calm markets, fund managers say

NEW YORK (Reuters) – The global market volatility that upended investors over the last six weeks may last deep into autumn now that the Federal Reserve has decided to keep interest rates unchanged, several equity and fixed income portfolio managers said on Thursday.

The Fed has not raised interest rates since 2006 and investors are concerned that a further delay will keep markets on edge, as analysts try to interpret how data points ranging from Chinese retail sales to commodity prices will influence the central bank’s next move.

Sep 16, 2015

Volatility seen lingering no matter what the Fed does

NEW YORK (Reuters) – While investors, traders and forecasters may be on the fence as to whether the Fed pulls the trigger this week on the first U.S. interest rate hike in nearly a decade, Wall Street’s “smart money” is decisive on one thing: market volatility will linger.

Heading into Thursday’s potentially momentous decision on interest rates from the Federal Open Market Committee, the Federal Reserve’s monetary policy-setting panel, speculative positions in CBOE VIX index futures are the most net long on record.

Sep 4, 2015

Betting on calm may worsen the storm

NEW YORK (Reuters) – The dog days of summer turn out to have quite a bite, as investors have been roiled by the longest bout of volatility in U.S. equities in four years.

The CBOE Volatility Index , the market’s favored measure of the degree to which investors expect securities prices to fluctuate, jumped 25 points to 53.29 in late August, the highest since January 2009. The VVIX Index , which measures the cost of hedging with VIX options, shot to an all-time high of 212.22.

Sep 4, 2015

Analysis – Betting on calm may worsen the storm

NEW YORK (Reuters) – The dog days of summer turn out to have quite a bite, as investors have been roiled by the longest bout of volatility in U.S. equities in four years.

The CBOE Volatility Index , the market’s favoured measure of the degree to which investors expect securities prices to fluctuate, jumped 25 points to 53.29 in late August, the highest since January 2009. The VVIX Index , which measures the cost of hedging with VIX options, shot to an all-time high of 212.22.

Aug 26, 2015

Steep stock losses have some investors loaded for bear

NEW YORK (Reuters) – After a six-day span in which the benchmark Standard & Poor’s 500 dropped 11 percent, some fund managers and analysts on Wall Street are raising the possibility that a bear market may be looming for the first time since 2009.

For much of the rally, corrections – declines of 10 percent – have been brief, as investors were always ready to jump in, betting that low interest rates and a slow-but-steady economic expansion would boost shares. Stock repurchases and high dividends supported equity investments as well.

Aug 26, 2015

Options premium sellers make hay while volatility rules

NEW YORK (Reuters) – Wild gyrations in the U.S. stock market that sent a key measure of volatility to a near seven-year-high has created a big opportunity for options premium sellers, and traders are making the most of it while it lasts.

U.S. stocks rose on Wednesday, with the market on track to snap its six-day losing streak. It was still a volatile day, however, with the Dow industrials trading in a 420-point range, and the ups and downs were expected to continue.

Aug 24, 2015

Wall Street slump highlights liquidity crunch in U.S. options market

NEW YORK (Reuters) – The sharp slump in U.S. stocks on opening on Monday threw U.S. options markets out of gear as a dearth of liquidity made it extremely difficult for traders to make trades.

The Dow Jones Industrial Average lost more than a 1,000 points in the first few minutes of trading, after a more-than 8.0 percent drop in Chinese shares and a selloff in crude oil and other commodities.

Aug 21, 2015

Wall St slump, soaring volatility boosts options volume

NEW YORK, Aug 21 (Reuters) – The rout in U.S. stocks this
week and soaring volatility has helped push options trading
volume to a four-year high as traders loaded up on near-term
protection against further downside pressure.

On Friday, concern about a China-led global slowdown sent
the S&P 500 below the 2,000 level and the Dow into
correction territory.

Aug 13, 2015

Utilities ETF hedging dwindles as U.S. rate-hike timing remains unclear

NEW YORK, Aug 13 (Reuters) – A Fed “lift-off” later this
year is a worry for the rate-sensitive utilities but the
sector’s underperformance this year and continued uncertainty
about likely timing of the hike has led to a dramatic drop in
hedging activity in the sector.

The S&P 500 index of utilities, used as a bond
proxy by investors in a low-rate environment, fell about 14
percent over the five months ending June. The sector has logged
a 5 percent decline for the year, compared with a gain of about
1 percent for the S&P 500.

    • About Saqib

      "Saqib Ahmed is an options correspondent working with the Markets team in New York. He previously led the Reuters Broker Research team in Bangalore. He joined Reuters in 2009 after graduating from the Asian College of Journalism."
      Joined Reuters:
      2009
      Languages:
      English, Hindi, Bengali
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