Europe's Thinnest Market In 18 Years Sends Ominous Signal

While US investors are fighting each other off to buy stocks (well FANG stocks), Chinese and European equity markets have suffered in recent months amid growth concerns and trade war fears.

One might not know it looking at the Euro Stoxx 50 Volatility Index hovering just barely in the double digits...

But, as Bloomberg's Benjamin Dow notes, larger prices swings could be coming to European stocks this month as volumes dry up.

Even by August standards, it's unusually quiet. The last time Stoxx 600 volumes' 15-DMA for this particular day was lower was in 2000:

It could be an ominous sign for those who are betting on a quiet end to the month, amid numerous macro stormclouds like Sino-U.S. trade jabs, U.S. politics (sanctions and mid-term elections), Italy-EU budget battles, and Brexit.

As Dow warns, an anomalously busy start to the month in terms of macro newsflow combined with low volumes could well set the stage for fireworks.

Comments

Manipuflation 07564111 Fri, 08/10/2018 - 03:45 Permalink

Tip of Kamchatka back to you sir and Ochen priyatna.  I appreciate your avatar.  I told my step-father-in-law, the Old Soviet (former Red Army Colonel), before that it is not America that is your enemy but rather China.  Look at a map.  He agreed.

Sun Tzu was Chinese.  Think about strategy.  Where would you be going?  Here are the things you won't do if you are China:  Go over the Himalayas, why would you even try?  You won't go to Japan.  You won't go the Koreas.  You won't send an invasion force over the Pacific.  You will go north but around Mongolia.  

In reply to by 07564111

Adolfsteinbergovitch Fri, 08/10/2018 - 03:13 Permalink

These diagrams have no meaning besides being a measure of the international (((elite))) financial terrorism against non obedient humanity.

Furthermore they compare depreciation of economies in dollar terms, which everyone knows is a counterfeit currency. Hence it is straightforward to imagine they can manipulate everything at will unless people become independent of this opioid like currency.

And guess what? Russia and China have opened the way, on which Europe is about to embark soon.

No wonder European economy is figuratively crushed by those numbers. They ought to overcome this of the fifth column of the cabal doesn't manage to sow more disease and discontent around

Dornier27 Fri, 08/10/2018 - 03:48 Permalink

Meh!  Does anyone know where the markets will be in 3 months?  You do?  Well go bet your shirt on it and tell me when you are a billionaire. 

Small investors mostly get screwed while big investors get rich because they rely on insider knowledge.