At-a-Glance
Key Takeaways with Craig
US Equity Prices were broadly higher as the market continued to digest yesterday’s FOMC rate decision and the corresponding remarks from Fed Chairman Jerome Powell. With the exception of the small-cap Russell 2000, which was up by nearly 1%, the major US Equity Indexes rose by over 1% and the Nasdaq was up by about 1.5%. Micro Treasury Yield futures were lower with the 2-Year and 10-Year declining by about 8 basis points.
As we wrote yesterday, CME FX CVOL levels are trading near 18-month lows. That got us curious, so we graphed the current implied volatility in all six major asset classes at CME to see how the current level compared to the average over the last 2 years. We used aggregate CVOL levels in FX, Treasury, Metals, Ags and Energies and used the at-the-money 30-day implied volatility in E-mini S&P 500 options as a proxy for implied volatility. As you can see, only in Treasury options, which is trading very near the 2-Year average and Agricultural options, which is impacted by seasonal trends, is the current options implied volatility higher than the 2-year average.
So, as we head into the second half of June, US Equity markets are trading at or near 2023 highs and implied volatility is trading at relatively low levels even as questions over inflation, interest rates and a potential recession remain.
Todays Featured Videos
Today's Future Price Action
Traders Resources
The information in the market commentaries have been obtained from sources believed to be reliable, but we do not guarantee its accuracy and expressly disclaim all liability. Neither the information nor any opinions expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts. The information on this site compiled by CME Group is for general purposes only. All information and data herein is provided as-is. Additionally, all examples on this site are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience. CME Group assumes no responsibility for any errors or omissions. CME Group, its affiliates and any third party information and content providers expressly disclaim all liability with respect to the information and data contained herein including without limitation, any liability with respect to the accuracy or completeness of any data. You use the data herein solely at your own risk. All data and information provided herein is not intended for trading purposes or for trading advice. All matters pertaining to rules and specifications herein are made subject to and superseded by official CME, CBOT, NYMEX and COMEX rules. Current rules should be consulted in all cases concerning contract specifications.
Neither futures trading nor swaps trading are suitable for all investors, and each involves the risk of loss. Due to the leveraged nature of futures trading and swaps trading, it is possible to lose more than the amount deposited in a position. Therefore, traders should not deposit more funds than they can afford to lose without negatively affecting their lifestyles. A trader cannot expect to profit on each trade, and should only devote a small amount of their available funds to each trade. All references to options refer to options on futures.
Past performance is not necessarily indicative of future performance.
CME Group, the Globe Logo, Chicago Mercantile Exchange, Globex and CME are trademarks of Chicago Mercantile Exchange Inc. CBOT is the trademark of the Board of Trade of the City of Chicago, Inc. NYMEX is the trademark of the New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other marks are the property of their respective owners. Each of Chicago Mercantile Exchange Inc. (ARBN 103 432 391), The Board of Trade of the City of Chicago Inc (ARBN 110 594 459), the New York Mercantile Exchange Inc (ARBN 113 929 436) and Commodity Exchange, Inc. (ARBN 622 016 193) is a registered foreign company in Australia and holds an Australian market licence.
This site does not constitute a prospectus, product disclosure statement or legal advice, nor is it a recommendation to buy, sell or retain any specific investment or to utilise or refrain from utilising any particular service. Readers should consult their legal advisors for legal advice in connection with the matters covered on this site.
