Amid the market volatility that has accompanied the coronavirus pandemic, traders that bought into markets when there was widespread fear have been rewarded so far. The Chicago Board Options Exchange's Volatility Index remains elevated, which could pose an opportunity, according to this analysis.
Some 69% of US brands have moved some or all of their digital, video or connected TV programmatic media buying in-house while 74% of those in Europe and 64% in Latin America have made the shift, according to a survey conducted by the IAB and Accenture Interactive. Authors attribute the trend to the greater availability of data, a move toward the post-cookie world and the pandemic.
The Bank of England will cut its policy rate to zero from its current level of 0.1% and announce further quantitative easing measures in November, Bank of America economists predict. They say the bank could even push rates into negative territory, given the lack of room for policy manoeuvering.
The European Central Bank stands ready to make further asset purchases to support the eurozone economy, says its chief economist Philip Lane. He added that the outlook for the bloc remains uncertain despite the apparent rebound seen in recent economic releases.
Current market liquidity for risk-free rates is not sufficient to permit traders to make the transition from Libor without breaching their fiduciary duty to their clients, market participants say. Because most risk-free rate deals are speculative flows, rather than legitimate risk-management transactions, the actual liquidity available for risk-free rates is much shallower than may be assumed, they say.
Spot gold prices reached a high point of $2,009.61 during trading in New York yesterday, while Comex futures settled on $2,021. "People want safety, and safety right now is gold because Treasuries are not yielding up," said one futures strategist.
Volatility traders face a confusing outlook with signals from both equity markets and the Cboe Volatility Index pointing to a period of calm, despite known volatility spikes such as the US elections lying ahead. The situation has left traders divided over whether now is the right moment to short volatility.
Assets held in US exchange-traded funds have recovered from their H1 lows this week to hit a new record of $4.66 trillion across all categories. The position contrasts with mutual index-tracker funds, which saw outflows of $34 billion during the same period.
The Institutional Investors Group on Climate Change, an investor group managing $16 trillion in assets, is proposing a plan to achieve net zero carbon emissions by 2050. The group says its plan is the first to give concrete recommendations on how to decarbonise investments.