Rising market shares and currencies tumble as ‘carry commerce’ unwinds

A worldwide market sell-off is more likely to proceed within the days forward after “pure market panic” final week, Rabobank strategists mentioned on Monday.

Following weaker than forecast US jobs information on Friday, charges markets are pricing in an aggressive 0.5 share factors in cuts from the Federal Reserve at a number of conferences this yr. 

US tech shares have been on the forefront of the sell-off, plunging from all-time highs hit solely weeks in the past. 

“Few in markets or monetary media had a lot dangerous to say when that bubble was blowing, however when issues flip, they demand fee cuts,” mentioned Michael Each, Rabobank’s chief world strategist.

For some traders, it’s “heads I win, tails I don’t lose”, he added.