SaxoTV

Fasdal: Are markets heading for the perfect storm?

1,963 views
September 29, 2015 auto industry, automobiles, bond, bond buying, bond buying programme, bond investing, bond investment, bond investors, bond market, bond markets, bond purchase, bond purchases, bond yield, bond yields, bonds, bonds market, bonds update, bonds v equities, brazil, brazil real, brazilian, brazilian bonds, brazilian real, brl, car industry, commodities, commodities markets, commodities supply, commodity, commodity currencies, commodity currency, commodity investing, commodity investments, commodity market, commodity markets, commodity outlook, commodity prices, commodity trade, commodity trading, emerging, emerging currencies, emerging economies, emerging market, emerging market bond market, emerging market bonds, emerging market currencies, emerging market economies, emerging markets, emergingmarkets, glencore, glencore mining, glencore xtera, real, saxo, saxo bank, saxo tv, saxotv, stock, stock market, stock markets, stock trading, stocks, stocks markets, trading, tradingfloor, tradingfloor.com, volkswagen, vw, vw scandal
Saxo's Simon Fasdal looks at the new risk factors that have hit markets. He says the almost 30% drop in Glencore's stock was a shock factor. Bonds continue to trade lower today because he says the market believes they will be stripped of their investment grade rating.

Volkswagen too has spooked the markets with increasing concerns for the rest of the automobile industry. 

Another major risk factor which Simon focused on last week, is Brazil. Although the real has stabilised, other markets are still showing signs of severe stress. He points out that bond markets are trading at high yields while credit default swaps are spiking at 545.

Simon concludes that investors must be extra cautious. If we see the combined escalation of Glencore and Brazil, he warns that we are looking at a perfect storm for financial markets.