Global equity volatility lowest in years
Improved economic growth continues in the US, Europe and China
Global stock markets and US futures are down slightly this morning for no other reason than that it’s the last day of a triumphant (or Trump-phant) quarter. With the US, Europe and China all showing improved economic growth, though, risks to equity markets are the lowest in years.
As an illustration we created an on-the-fly index of global equity risk. It’s the average of S&P implied volatility (VIX), Eurostoxx VIX, Nikkei VIX, the CBOE-traded China ETF volatility (on the FXI ETF), and CBOE-traded emerging markets volatility (on the MSCI emerging markets ETF EEM).