Key Takeaways with Craig
Well that was quite a first week of October! After a couple of strong rallies to begin the month, US Equities sold off sharply today after the September Employment report indicated a strong labor market and US Treasury Yields jumped again. After the dust settled on the week, here are some net changes in Price and Volatility in some of CME’s major products in our normal format and powered by QuikStrike data:
- US Equity Index prices wound up with small gains on the week while implied volatility in CME’s Equity Index options was near steady on the week.
- WTI Crude Oil futures prices continued higher today and wound up 16% on the week. Implied volatility dropped, especially after the OPEC+ decision was announced.
- The Euro FX declined against the dollar and the future was trading under parity at .979.
- Micro US Treasury yields climbed and the 2s versus 10s inversion remains near 50 basis points.
- Finally, it’s not featured in our graphic below, but according to CME’s FedWatch tool, the probability of a 75 basis point hike at the next FOMC meeting increased from 56.5% to 81.6% this week.
We hope all of our In FOCUS readers have an enjoyable early Autumn weekend and we’ll see you back here on Monday.
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