AI boom will produce winners and ‘carnage,’ says tech boss; dollar sinks to four-year lows after Trump comments – business live
Cisco chief executive says technology ‘will be bigger than the internet’ but current market is probably a bubble; dollar selling intensifies, gold climbs through $5,200 an ounce to new record highOn the stock markets, European shares are taking a breather and have fallen back after two days of gains.The pan-European Stoxx 600 index is flat ahead of the latest interest rate decision from the US Federal Reserve later today (markets are expecting no change but are waiting for further clues on policy from Fed chair Jerome Powell during the press conference).The FX options market reinforces this momentum. Positioning for a stronger pound versus the dollar is now the most bullish over a one‑week horizon since 2019, while longer‑dated risk reversals have surged back to levels last seen during the tariff shock last April.More broadly, currency volatility has returned with force. The G10 one‑month implied/realised volatility spread is at its widest in over a year, signalling that traders are bracing for more turbulence ahead. Continue reading...
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Cisco chief executive says technology ‘will be bigger than the internet’ but current market is probably a bubble; dollar selling intensifies, gold climbs through $5,200 an ounce to new record high
On the stock markets, European shares are taking a breather and have fallen back after two days of gains.
The pan-European Stoxx 600 index is flat ahead of the latest interest rate decision from the US Federal Reserve later today (markets are expecting no change but are waiting for further clues on policy from Fed chair Jerome Powell during the press conference).
The FX options market reinforces this momentum. Positioning for a stronger pound versus the dollar is now the most bullish over a one‑week horizon since 2019, while longer‑dated risk reversals have surged back to levels last seen during the tariff shock last April.
More broadly, currency volatility has returned with force. The G10 one‑month implied/realised volatility spread is at its widest in over a year, signalling that traders are bracing for more turbulence ahead.
Continue reading...
