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By Chris Becker
Friday’s session in stock markets around the globe showed a breakdown in correlation, highlighting a new fragility in risk as the Fed appears to moves ever closer to normalising interest rates, in the face of an emerging markets crisis and a slowing China. Europe rebounded strongly after the VW fiasco, while US stocks were tepid due to a strong selloff i biotech stocks. Bonds sold off slightly while the USD moderated as Euro lifted.
As usual for Monday’s I’ll take a longer view point on the direction of markets, which for stocks at least confirm a new bear market status, and not just a large correction.
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