U.S. markets are rebounding strongly, with the Dow up over 300 points, but there’s far too much volatility to relax.
This morning when Europe and Dow futures were up over 100 points, Politico’s Morning Money newsletter warned: “Early trade has not been very indicative lately, especially as short-sellers get to work. So by the time you read this Europe could well be back in the red.”
Sure enough everything changed by 6 ET. rumours about BNP Paribas caused a brutal swing from around 6% in the green to 6% in the red, with SocGen on a similar 180 down to -7.5%. Europe sold off and US futures dropped into the red.
They changed again around 8:30 ET. A beat on initial claims didn’t have an immediate market impact, but there was a slow trickle upward in futures and gains in Europe. Long story short the Dow is up over 200 points… for now.