U.S. equities have rotated lower again
U.S. equities have rotated lower again though global stocks recouped some recent losses with Wall Street's rebound on Tuesday. Now that everyone is an expert in vol, the VIX has settled back into a 31.64-28.83 range so far today compared to its 16.80-50.30 range this week. Bloomberg reported that investment products just directly linked to the VIX may total as much as $8 B, according to SocGen research, though both on the short- and long-volatility sides. The Dow is 93-points lower, S&P sank 11-points and NASDAQ is off 20-points in pre-market action, with healthy "fair value" adjustments pointing lower still. Asia was mixed, with the Nikkei up marginaly and China's CSI 300 off 2.3%, while Europe is sporting gains of 0.6-1.0%, paced by the UK FTSE 100. Attention now turns to the latest stand-off on debt ceiling/funding, which expires on February 8, unless kicked again down the road. Trump recently indicated little inclination to compromise on a border wall, though a bipartisan effort had made some progress on funding issues. Consumer credit, EIA and 10-year auction results are on tap later, along with Fedspeak from dovish Dudley and Evans.