Marketmind: Dollar feeds on stress
A stressful start to a packed week for world markets saw the U.S. dollar feed off a sour brew of geopolitical, economic policy, international trade and corporate tensions.
The VIX 'fear index' jumped almost 3 points to more than 33 early on Monday - its highest for the month and at a level that would mark its highest close since June if sustained later in the day. And as a fourth 75 basis-point Fed rate hike is now fully priced yet again, the dollar's DXY index climbed again - and traders started to eye year-end trading stress too.
With the annual meetings of the International Monetary Fund and World Bank in Washington as a backdrop, the week kicked off with further tremors from Russia's faltering invasion of Ukraine and mounting trade tensions between the U.S. and China.
With last week's warning from Advanced Micro Devices and Micron Technology ringing in the ears, the chip sector shivered into the new week.