NEW YORK:
Rising volatility in US shares is driving a seek for defensive belongings, although buyers could have fewer locations to cover this time round.
Wall Road’s most closely-watched measure of investor nervousness, the Cboe Volatility Index, on Friday hit its highest in almost seven months, because the S&P 500 slid for the week. The benchmark inventory index is down 8% from late July, when it hit its excessive for the 12 months, although nonetheless up 10% year-to-date.
Property that may assist buyers climate the storm could also be in brief provide. Fairness sectors reminiscent of utilities and shopper staples, fashionable with nervous buyers when markets develop uneven, have been swept up within the S&P 500’s current decline.
The Japanese yen stands at its lowest towards the greenback in a couple of 12 months. US authorities bonds are on monitor for an unprecedented third straight annual loss, with yields on the benchmark 10-year Treasury – which transfer inversely to bond costs – at their highest since 2007.
That has left buyers piling into different conventional safe-haven belongings such because the greenback and gold, in addition to short-term debt.
Printed in The Specific Tribune, October 22nd, 2023.
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