Pound to euro exchange rate ‘slides’ amid Brexit volatility – should you buy travel money?

The pound to euro exchange rate has decreased despite the odds of a no-deal Brexit slimming, experts have said. On Tuesday, after a day of debate concerning different amendments to the Withdrawal Agreement originally proposed by Prime Minister Theresa May, MPs supported a new approach to reopen the agreement and replace the backstop with “alternative […]

Volatility is set for a big comeback on Wall Street — and it’s down to Facebook and Google

Reuters / Sue Ogrocki Volatility could be set for a big comeback on Wall Street, and big tech companies like Facebook and Google are partly to blame. Under a major reorganisation, Facebook and Google parent Alphabet, will shift from their traditional homes in the top-performing technology sector and into a deepened pool of telecommunications and […]

The 50 cent options trader who bets on market volatility says a financial ‘earthquake’ is coming

REUTERS / Mike Hutchings Asset manager Ruffer LLP uses 50 cent options contracts to bet on rising market volatility as a hedging instrument. The fund says February’s stock selloff is likely to be a tremor and a bigger financial “earthquake” is only months away. Ruffer remains positioned to profit from an increase in volatility. The […]

More market volatility seems likely

“FASTEN your seat belts. It’s going to be a bumpy night.” Those famous lines of Bette Davis in “All About Eve” may turn out to be the motto for the markets in 2018. After the “volatility vortex” in February, sparked by concerns about inflation, markets have thrown a “tariff tantrum” after President Donald Trump sparked […]

Bond market volatility can be a good thing

Bond yields have been rising for long enough for stock investors to account for inflation and interest rate tightening. Stock repricing is not a reflection of economic downturn, just of a market adjustment in a slightly overheated environment. Diversify your portfolio across asset classes. Yields may go notably above 3% soon. Stocks swung wildly in […]

Bets on low market volatility went spectacularly wrong

THE Cboe Volatility Index, or Vix, known as the “fear gauge”, spikes when markets are most jittery. When Sandy Rattray, now at Man Group, an asset manager, worked on the Vix in the early 2000s, he and his team considered launching an exchange-traded product (ETP) linked to it, but concluded that it would be a […]

Market volatility has been low, encouraging risk-taking

MAY YOU live in boring times. Financial markets have become dull, if profitable. The S&P 500 index, America’s leading equity benchmark, has notched up its longest-ever streak without a 5% reversal. Bond yields may have inched up in recent months, but are still at the bottom of historical ranges. Institutions famed for their trading prowess, […]

Steam drops Bitcoin payment option, citing fees and volatility

Enlarge (credit: Aurich Lawson / Getty) When Valve first started accepting Bitcoin as an option for Steam purchases last April, the cryptocurrency was trading around $ 450. Today, with Bitcoin surging past $ 12,000 per coin, Valve has announced that “Steam will no longer support Bitcoin as a payment method on our platform due to […]

‘Dangerous volatility’ is inciting flashbacks to the financial crisis

Reuters / John Gress Markets around the world have been grappling with historically low volatility for some time now. And Societe Generale thinks they’re finally due for a reckoning. In fact, the situation has gotten so untenous that it’s reminding the firm of the period leading up to the most recent financial crisis. Back in […]