Volatility Pops: Market Volatility Index Highest Since May

Volatility Pops: Market Volatility Index Highest Since May

The orderly selloff we've been having just got a bit disorderly. The markets started the week feeling like it was a Manic Monday with stock futures sharply lower on extended concerns regarding China's real estate sector. Of particular interest is Hong Kong-listed Chinese developer Evergrande Group and whether Beijing will let the debt-laden firm fail. A default could mean potentially billions in losses for shareholders and bondholders around the world. This is on top of continued concerns that there could be ripple effects for the rest of the global economy as the Chinese government continues to tap down on its real estate and other industries that are considered in need of reining in. Meanwhile, lawmakers in Washington continued debating an increase to the government's borrowing limits. The House is set to vote this week on the debt ceiling and a stopgap spending measure to keep the government operating past the end of the fiscal year, which ends on September 30. The upshot was a clear risk-off tone to the market. Following sell offs on Friday and this morning, the question now is will this become a prolonged number of sell off days or will this signal a buying opportunity. Monday