Nell Mackenzie
London (Reuters) – Wall Street supplies could face a correction because of the Ru we on the option of an option, said specialist Goldman Sachs Scott Rubner in a note on Thursday, which Reuters saw on Friday.
Approximately 2.7 trillion of the US derivatives on the stock market should expire on Friday, which, if not executed, will put pressure on the stock markets and the instability of Stoke, according to the note.
Why is that important
The S&P 500 and the European Stock Exchange reached record maximums on Tuesday, but since then they have rejected in the middle of the last warning of Trump’s Tariffs to medicines, semiconductor chips and wood, which, among other threats, worsened the fears of broad trade and unregulated investors.
Purchase of shares can be slowed for other reasons. Retail traders in the United States trade less because they will have to pay their annual taxes, and the average flow of pension funds in mutual and exchanged funds usually narrowed in March, Rubner said.
Numbers
About $ 2.7 trillion, the stake or derivative option that allow the merchant betting that the shares will reach a certain price, expires on Friday, said Goldman Note.
These derivatives include bets on the S&P 500, as well as US funds and individual shares.
Banks and mediators helping in these bets have over $ 9 billion protection against these trades. These positions acted as a muffler because of volatility, says Goldman notes: “supporting sets of weakness and disturbance.”
A key quote
If investors do not return to the renovation of their options, then the mediators must also unwind their nerves, explains Dan Izo, founder of the HEDGE Fund BlkBrd Asset Management and the former banking merchant.
“This is translated as a lot of current pressure. There is a higher risk if there is no one that is willing to buy this influence, we could see it starting a bigger sale,” Izo said.
(Reporting Nell Mackenzie, Mounting Amanda Cooper and Philippa Fletcher)
