Wrap

Finally, things started moving. The Fed signalled that it is going to start hiking. And, implicitly (one assumes), tapering. This cause spike in the dollar index, DX, up by 1%. All commodities fell, in sympathy, with the exception of NG. Equities dropped by ~0.7% (SPX & ACWI). Bonds, though, didn’t think this would be enough: the 10Y yield went back up to 1.57, up 7bp.

Overall, a tiny bit of excitement on a hot summer evening. European indexes were up, but I think the markets may have closed by the time of the rate hike intentions had been released.

In other economic news, housing starts were strong: 3.6% MoM. I think that the disaster that was housing in the US in 2009 may finally be healing. $EQR might be a way of playing this.

Crumbs

CBOE will extend VIX & SPX options trading to virtually 24 hrs from 21 Nov this year.

$RIDE has made an interesting choice for its new CEO.