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By Chris Becker
China’s manufacturing PMI slump, combined with the IMFs rising concern about emerging market growth has seen global growth forecasts and risk appetites slashed, sending risk prices down all across the board. Stocks in the US and Europe were all off 2-3% while oil suffered a huge reversal in fortune, falling nearly 10% in a single session! The ECB is likely to sit on its hands again during its “whatever it takes” program as German unemployment did not rise over the month.
The VIX is really spiking here, heading to new three year highs as we cross into the notorious September/October months, spiking 9% overnight:
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