No hurry to worry
For once, markets are approaching the end of the week in a relative state of calm. Oil prices have eased around 4% from the highs seen earlier in the month, global equities have more than recovered from the modest correction and the sell-off in higher yielding currencies (Brazil and Australia, among others) has stabilised, at least for the time being. The other notable event was the further fall in the VIX index to levels not seen since mid-2007. In other words, investors are putting a much lower premium on uncertainty. Now, this can be seen as both a good thing and a bad thing, given that it was the under and mis-pricing of risk that was partly a factor in the financial crisis in the first place. But for now, investors appear content to at least breathe a sigh of relief and not to worry about the latest twist and turn in Greece. Enjoy it, as it won't last forever.
- China's growing pains
- Rate race
- Another bubble bursting – this time down under
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