Market Volatility News and Data Series

Banks appear to have moved out of the spotlight – at least for now – but one large cap stand out in terms of stock specific movers on Wednesday was Tesla. The share price fell noticeably running into the close although it’s important to point out that solid gains were posted earlier in the week, helped along by a debt upgrade. One day vol on Tesla came in at 113.63% against 85.45% for the month.

Yesterday’s US rate hike may have been widely expected but there had been a growing minority who were thinking the Fed may hold fire given the recent market turmoil. That didn’t happen and the resulting move saw gold prices advance, heading back towards the $2000 mark. Notably that drove price action in CMC’s proprietary basket of gold producers, pushing one day vol to 79.99% against 50.12% for the month.

That rate hike saw major US equity indices tip lower heading into the close. The S&P was the stand out here, with one day vol ticking up to 23.37% against a one month print of 21.11%, whilst the Dow 30 wasn’t far behind either.

And despite the talk from the Fed yesterday being that there’s still a long way to go in the fight against inflation, the dollar index slipped back to levels not seen in almost two months, suggesting that the market is somewhat unwilling to buy into the rhetoric. The Kiwi Dollar saw the most pronounced movement, with one day vol against the greenback printing 20.66% against 13.38% on the month.