BMI analysts: Financial market volatility has increased, but it is too early to assert that it has worsened

According to BlockBeats, on August 5, despite the recent turmoil in financial markets, analysts at BMI, a research institute under Fitch, believe that it is too early to assert that macro or market conditions have deteriorated significantly.

BMI said the surge in financial market volatility was the result of macro and market shocks in a situation where risk assets were overbought and overstretched. When the correction began, the stock market had previously rebounded sharply and was prone to selling.

BMI notes that corrections of 5%-10% are fairly common in bull markets, with volatility tending to intensify between July and October.

Factors that could signal the stock market rout turns into a bear market and weigh on the global economy include stocks breaking through key support levels, geopolitical tensions driving oil higher, and continued weakness in U.S. data fueling concerns about lagging Federal Reserve policy.