Equity vol convexity selling gains momentum
Risky hedging strategy is attracting interest but can investors learn from past convexity blow-ups?
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Risky hedging strategy is attracting interest but can investors learn from past convexity blow-ups?
The market spotlight on Thursday will continue to be on the US, where another flurry of economic indicators and speeches from central bank officials are scheduled.
The coming holiday-shortened trading week will back-end loaded on both sides of the Atlantic in terms of economic data.
Yen is currently trading as the strongest currency for the day as the markets enter into US session. The earlier dip below 160 psychological support against Dollar spurred a wave of buying, propelling Yen sharply higher. However, subsequent trading has not shown clear follow-through momentum, indicating that the initial surge may have been more of a reactive spike.
Eurozone Economic Sentiment Indicator fell from 96.2 to 95.6 in April, below expectation of 96.9. Employment Expectations Indicator fell from 102.5 to 101.8. Economic Uncertainty Indicator fell from 19.3 to 18.8.