IXN

The case for the European Central Bank to add monetary stimulus gained momentum on Tuesday, with Executive Board Member Fabio Panetta saying policy makers should err on the side of doing more to keep the rebound on track.

More than two weeks of doubt and volatility in the stock market are finally starting to show up in corporate bonds.

The tech-led selloff in U.S. equities is likely only halfway done, according to the Morgan Stanley strategist whose warning last month about the top-heavy market now appears prescient.

In the short-run momentum often persists, until it becomes too expensive to hold the momentum asset.Now, if a market is cheap, the purchase of out-of-the-money options can give the market a kick as the option purchases force those that sold the options to hedge them.But, when the market is expensive, and volatility gets higher, the economics of the trade gets harder until the trade reverses, and the momentum effect goes the other way.