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Stock, Currency Volatility in Sync as Fed, China Risk Take Hold

  • Swings in stocks, FX are most correlated since June 2020
  • Fed, Evergrande woes and China crypto ban among catalysts
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China Shuts Down All Cryptocurrency Trades

Volatility in U.S. stocks and major developed currencies is swinging in lockstep by the most in more than a year, as risks from China compete with central banks to drive market moves.

The Cboe Volatility Index, or the VIX, -- a measure of expected swings in U.S. stocks -- climbed this week to the highest in nearly four months. A JPMorgan gauge of one-month implied volatility in Group-of-Seven currencies touched a seven-week high. While both measures have since receded from those peaks, their relationship is the strongest since June 2020.