It started gloomy with investors scared of the real deal recession and it improved as the US authorities made all efforts to keep the economy surefooted. The US is around 3% up, Germany is 5% down and London remains unchanged. Although a worse performance of the European markets is noticeable – a sign of threats to the old continent economy, a high volatility in prices spells further turbulences.

Such shocks usually do not just come and go, but cause increased volatility over some period. Fed’s 75 bp cut meant that there were not only big swings down, but it will take more than that to see prices climbing higher. Next week’s US GDP and payrolls will give it a chance.     

Przemyslaw Kwiecien