Absurd headline risk for now as risk conditions are deteriorating
Saxo Market Call
Summary: The market action yesterday and overnight underlined the extreme headline risk in this market, as well as the poor liquidity conditions. Yesterday, the market attempted a heroic recovery on hopes for the Fed put backstopping the market, before we get covid vaccine maker Moderna's CEO out roiling the waters with loud concerns on the new omicron variant's potential to evade the current vaccines. Elsewhere, we look at signals from the US Treasury and EU sovereign bond markets, note that financial conditions are in a very different place relative to any other outbreak of volatility this year, especially in terms of widening credit spreads, look at key equity stories and much more. Today's pod features Peter Garnry on equities, Althea Spinozzi on fixed income, and John J. Hardy hosting an on FX.
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