Thin markets, fat moves
Yesterday we flagged the dangers of thin markets:
Remember that low volatility in the markets can mean either small moves or outsized moves if any significant news breaks.
This warning remains with the following US markets restricted opening as follows
- Electronic trade CME Globex: Equity, Interest Rate, FX, Energy & Metals trading halts between 1800GMT / 13:00 EST & 23:00GMT/18:00 EST
- CME pit - Interest rate, Options close at 18:00/13:00EST
- NYSE - Early closure at 18:00GMT
- ICE -see here
The breaking variant news has investors worried, but we are still very early on this. This may be offering great value buying areas and decent dips to buy. So we will be monitoring for any key developments, but this is expected to take a few weeks to get to the bottom of. We also have many US investors still away so hard to have full conviction in any of these moves.
At 1600 GMT we have Canadian budget data.
Aside from that watch out for sentiment driven trade around COVID variant news and any comments from the WHO on how they are categorising this new variant.
