With US' ES locked limit down those looking for a hedge will be hitting bids elsewhere in other, perhaps less liquid, instruments.
Asian stocks are taking a beating today also:
- Nikkei 225 index -6.15%
- Hans Seng HK -3.95%
- Shanghai Comp -2.02%
- ASX in Australia … (caution, violent scene follows) -8.51%
US equity futures remain limit locked down. I explained what that means here earlier:
In the UK, FT 100 index futures are down more than 7%
The background to all the moves (apart from the immediate catalyst oil shock over the weekend) are:
- fears over a global pandemic
- fears of another credit crisis
- concerns over poor US leadership - the world's strongest economy has leadership in denial of the health crisis