Global markets were lower overnight with broad based losses. Energy stocks remained under pressure after oil prices fell for a fourth straight day, while US retailers also reversed as Amazon's Whole Foods detailed plans to cut prices again.
As we touched on yesterday, volatility has been very low this year and there have not been any significant pullbacks/market corrections this year. As such, at the current juncture we do not see a healthy pull-back in markets after an extended period of solid gains across global markets as cause for concern.
While stock markets were down, the US dollar remained well supported after US inflation figures came in near expectations, keeping intact bets that the Federal Reserve will hike US interest rates next month and raising the odds for more hikes early next year.
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