A true risk aversion wave hits global markets

FXStreet (Bali) - The risk aversion sentiment has taken its toll on stocks, bonds, currencies and commodities, with the S&P 500 dropping more than 1%, bond yields crashing by about 8bp in the 10 year curve to 2.44-45%, near lowest in 13 months, Gold shooting beyond $20, the Japanese Yen surging across the board as Nikkei 225 futures tumble.

Further prove that the environment has changed drastically in the last few hours, the VIX, which measures volatility, has exploded 3.7 in vols, highest rise in years. Towards the very end of the US session, news of an Israel ground invasion and a White House lockdown added fuel to the fire, with losses exacerbating.