Mind the Aftershocks: Post-Tantrum Market Calm Unnerves Traders
- More market volatility likely ahead, warn Nordea, Fidelity
- Bond volatility gauge still elevated, suggests jitters linger
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Weeks of gut-wrenching turmoil are keeping investors on the lookout for further volatility explosions, despite the uneasy calm that’s recently descended on world markets.
Money managers’ worst fears of 2008-style ructions ultimately proved unfounded, yet the failure of three US banks and the emergency rescue of Credit Suisse Group AG in Europe revealed signs of financial stress, sparking some of the worst turbulence in recent years. Wild swings in interest-rate expectations and rallies in haven bonds ricocheted through other asset classes as traders tried to guess where a new crisis might erupt.