Vicious swing from risk as markets price poor growth

Mall of America
By Jon Hay
16 Oct 2014

Volatility sprang back into global capital markets this week, tearing apart the calm, even complacently placid mood that had prevailed for most of the past two years. As with many true market shocks, the change was unexpected and to a large extent unexplained.

The trigger was a poor US retail sales figure — normally something investors would barely notice. But the past week’s crash in risk assets leaves market participants facing a radically changed prospect for the rest of this year, one in which markets are finally trying to price in ...

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