All is flux, nothing stays still

Edito Past week again shook the financial markets once again first, with an unexpected drop in oil prices (below zero for the WTI ) and second, with the ECB’s decision to accept as collateral and thus to buy under the APP and the PEPP asset purchases programs the Fallen Angels, bonds that recently became High Yield or “junk”. In fact, the latter followed the Fed’s announcement of two weeks ago. However, fears about the global economic recession are materialising with the PMIs indices on the lowest historical levels in Europe and the United States Besides, the increasing geopolitical risks with new statements by Donald Trump vis-à-vis Iran also threw some fuel on the fire but have nevertheless done the job of supporting oil prices (which indeed recovered by the end of the week). The roller coaster situation thus continues on the markets, only the volatility remains steady (and high) in the corridor of 40% – 45% for the V2X index exceeding it only to the increase at times of particular tensions .