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Analysis: Rising cross-asset correlation shows more fuel for sell-off


By Patturaja Murugaboopathy (Reuters) - At a time when volatility in financial markets is creeping up on rising bond yields and fears of U.S trade protectionism, one modern leading indicator of trouble ahead suggests stock market losses could intensify going forward.Cross asset correlations - the degree to which the price of a financial instrument is affected by a change in the price of another asset class - last week hit a near two-year peak, according to a Reuters analysis of weekly price returns on eight major instruments.That still leaves the measure short of highs seen around a handful ...

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First Published: Fri, March 09 2018. 17:21 IST