Key Takeaways with Craig
US Equity prices bounced back with a strong rally today as all four major indexes finished the day higher by between 1.3% and 2.7%. Implied volatility in CME’s Equity Index options that expire 30 days from now declined but, the options that expire this Friday remain elevated compared to the options that expire tomorrow and next week and beyond, which is illustrated in the QuikStrike term structure graph below. This is somewhat unsurprising as Friday brings us the July Employment report that will provide the latest reading on the health of the US economy and the potential to move prices in several CME asset classes.
The OPEC decision to raise output very slightly was in line with the market predictions. WTI Crude Oil futures prices fell by about 4% and are trading at levels we last saw in February of this year. Natural Gas futures prices remains volatile, up another ~7.5% today.
Finally, US Treasury yields rose earlier in the day but fell back by late afternoon to trade near steady on the day.
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