News

Minsheng Securities:

During this week (September 2, 2024 to September 6, 2024), global cross-asset correlation and volatility once again amplified, to some extent resembling a "miniature version" of August 2024: the Japanese yen exchange rate rapidly appreciated, major global stock indices and commodities fell one after another, and the VIX volatility rose again.

On the triggering factors, on the one hand, recent economic data did not clearly signal a recession in the United States. The market's divergence on the expectations of a "soft landing" for the U.S. economy and the pace of interest rate cuts by the Federal Reserve has intensified. At the same time, there has been some marginal tension in U.S. dollar liquidity on the funding side. From a deeper perspective, the high volatility of financial assets at present once again warns of the systemic fragility of financial markets facing marginal changes after years of debt expansion.