The Globe and Mail reports in its Tuesday, March 17, edition that every opening bell seems to kick off a new odyssey, as months' worth of volatility is squeezed into days, and days into minutes.
The Globe's Tim Shufelt writes that Canaccord Genuity
analyst Javed Mirza says these patterns are being magnified by the prevalence of automated, mechanical trading systems. He says: "The machines are pushing things to extremes. They have two commands -- either buy or sell."
So far, the trading halts seem to have prevented markets from going into freefall, with indexes largely stabilizing afterward big opening bell tumbles, at least until the reliably turbulent close.
Mr. Mirza says, "I think that they're helping people to step back and try to avoid getting caught up in the tick by tick in the markets." Some market veterans, however, are asking if circuit breakers are sufficient in the circumstances, and whether financial markets should be shut down entirely as governments and health officials around the world try to contain the pandemic.
The Globe notes that the suspension of trading in China for more than a week seemed to help bring calm back to the Chinese stock market.
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