Nothing to see here, folks. Keep selling volatility

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Nothing to see here, folks. Keep selling volatility

David Goldman argues that market expectations around a potential China stimulus, followed by disappointment over its scale, were overblown. Selling volatility on Chinese assets is a compelling trade, as the current volatility levels are not justified by any foreseeable policy shifts.

The threat is mightier than the execution in the Middle East

David Goldman contends that a wider Middle East war is unlikely because major powers, including China, have a vested interest in avoiding such escalation. Furthermore, Beijing holds significant influence over Iran and can discourage further missile attacks on Israel.

ASML: Orders collapse, sales and profit guidance cut

Scott Foster reports that ASML, the leading producer of semiconductor lithography equipment, saw its share price drop by 15.6% after announcing a significant decline in new orders. The announcement negatively affected the broader semiconductor sector.

Germany’s Ukraine policy becoming difficult to reconcile

Diego Faßnacht reports that German Chancellor Olaf Scholz is facing a delicate balancing act regarding Germany’s support for Ukraine amidst the ongoing war. While Scholz strongly backs Ukraine, he has shown increasing openness to peace talks with Vladimir Putin.

Zelensky readies narrative of Western “betrayal”

James Davis reports that Ukrainian President Volodymyr Zelensky may soon present this situation to the Ukrainian public, framing Kiev’s inability to win as a result of insufficient Western support as it faces artillery shortages and a declining number of trained soldiers.

Talks and threats in East Asia

Scott Foster reports that as the Middle East