📝Liberation Day Vol Spike One Of The Fastest to Retrace: Barclays

Global equities have completely recovered their post-Liberation Day losses, with most equity indices trading visibly above 2-April levels. Strikingly, implied vols across major indices also have not only reversed their respective spikes, but are in fact trading below the levels they started out from (Figure 7). As we see in Figure 8, the vol spike was not just one of the largest but also one of the fastest to retrace in history. Notably, this comes despite persistent uncertainty around tariffs, as the July 9 deadline approaches and the Trump administration has vowed to appeal the tariff ban (while imposing tariffs in other ways, e.g. steel tariffs at 50%). - Barclays