Financial markets look to put volatility behind them
Financial markets are attempting to regain momentum after a few days of uncertainty. Global equities have moved back above the short-term moving average, and investors—encouraged by the more moderate tone between the US and China—are focusing on a possible resolution to the US federal shutdown and on the major quarterly earnings reports starting to be released today.
Our intermarket dashboards indicate a renewed risk-on sentiment across markets, with the S&P 500/VIX ratio rising above its annual average and the S&P 500/Nasdaq ratio hitting a new yearly low. Global equities are back above the short-term moving average, and together with bonds appear poised to resume their upward trend. Commodities, however, remain in a sideways phase.
On the macro front, today’s focus will be on the inflation data from Canada. As for earnings, attention is centered on the results from Netflix and General Motors.
Our forecast models point to a positive day for both equities and bonds. Signals remain mixed for commodities, while the outlook for the US dollar turns positive again. Volatility remains stable.
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NOTES AND WARNINGS
Data compiled by kbmeter.com. Analysis date: 21 October 2025 - 7:31 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.
