BE CAREFUL what you wish for. Traders were bored last week and now they have got some excitement. The US equity market suffered its worst trading day in eight months, falling 1.8%, with banks dropping 4%. The Volatility index, or Vix, which recently dipped below 10, jumped above 15. The dollar has lost most of its gains since Donald Trump was elected in November (see chart).

The catalyst for the sell-off seems to be the latest set of...Continue reading