VVIX rising though VIX yet to follow

Equities showing some weakness

Chart of the Day

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The VVIX, essentially the volatility of VIX itself, has risen sharply in the past few trading sessions. This is often a sign of a rise in the VIX ahead, which could occur alongside a further weakening of equities this week, following the falls in the US markets on Monday.

Macro

New home construction in Canada is booming.

By contrast, in the eurozone, construction growth fell to -4.7% YoY in February.

Russian GDP growth fell to -2.8% YoY in February. Manufacturing confidence implies growth should pick up.

Markets

While there are plenty of moves underneath the surface, typical selection of risk-on and risk-of trades are both going sideways.

Tech stocks were behind some of the weakness in the market yesterday.

Canada presented a budget yesterday, containing more fiscal stimulus. Its stock market has been underperforming the S&P 500 recently.

The DXY has depreciated by 1.1% over the past week

That has helped the AUD gain ground, but the cyclical currency has not moved by as much against the safe haven CHF or JPY.

Currencies like AUD have been helped in the past week by higher commodity prices. Moves in the major commodities in the past week have ranged from +2.2% for iron ore to +14.6% for lumber.

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