Markets unstable - 4 Things to know for today
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
1. Investors not taking risks
The closely-watched VIX volatility index is rising to trade at its highest level in more than three months as stock markets around the world dive and investors pile into safe-haven bonds.
Bond prices in nations with solid credit ratings are spiking as investors look for a safe place to park their money. German 10-year government bonds are a prime example, with yields entering negative territory for the first time ever on Tuesday. Buyers of the bonds are essentially taking a loss just to hold those assets.
U.S. stock futures are slipping and many European markets are dipping by more than 1% in early trading. Most Asian markets ended the day with losses.
2. GBP is diving amid Brexit fears
Global markets have grown increasingly nervous about the prospect of the British public voting to leave the European Union during a referendum next week.
The pound is declining versus all major global currencies, extending significant losses seen over the past few months.
A recent study by risk modeling company Axioma predicts British stocks could lose as much as a quarter of their value if the U.K. chooses to leave the EU.
3. Fed meeting ahead
At 8:30 a.m. ET, the Census Bureau will release U.S. retail sales data for the month of May. Overall sales increased 1.3% in April compared March based on higher sales of autos, gas and online retail -- but general merchandise store sales were flat.
4. Monday market recap
Monday marked the third consecutive day of declines for all the major U.S. indexes.
The Dow Jones industrial average was down 0.7%, while the S&P 500 shed 0.8% and the Nasdaq dropped 0.9%.