sentix ASR Essentials 30-2016
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31 July 2016
Posted in
sentix Weekly
High near-term neutrality chimes with low equity volatility
Despite a positive week for eurozone equity market performance, the latest Sentix survey suggests sentiment on the near-term prospects for markets has modestly deteriorated, even though survey readings based on investors’ strategic bias on markets have broadly held onto recent advances. This may reflect the heightened level of neutrality (or uncertainty) on the near-term outlook for markets that is also evident in the survey. High neutrality chimes with current low levels of implied equity volatility as measured by the likes of the VSTOXX (Chart 2, p2). With both measures looking stretched, there is a risk that volatility picks up in the near-term.
