The CBOE VIX volatility index closed on Monday at 9.77, its lowest level since 1993. Saxo Bank’s head of equity strategy Peter Garnry explains the implications.

The lack of tail risk in Europe is being priced out due to the Macron presidential win in France, he says, and there is a synchronised global economic environment for first time in years.

Garnry explains that earnings season has been robust with operating profits up 10% YoY in US & Europe, and revenue growth is around 5 to 6% with positive outlook from the big companies.