Too Far, Too Fast for A Highly Connected Market?

The World Bank says contraction will be greater than expected; the global economy will slow by 2.9% rather than 1.7%.

Enter risk aversion. The gloomier-than-expected forecast spooked markets yesterday. Most notably, the commodities got hit. Crude was down; gold was down; copper was down. There was no love for stocks either.

The Japanese yen and the US dollar were well bid. The commodity dollars were hit hard. The European currencies also slumped. And emerging market currencies rolled over.