China, Commodities, Credit & Complacency

THERE is a familiar scene in westerns where the cavalry is riding through the mountain pass and the captain says “I don't like it. It's quiet. Too quiet.” Seconds later, a soldier gets an arrow in his chest and all hell breaks loose. Some people feel that about markets at the moment. Deutsche Bank reckons the S&P 500 has had 10 out of 11 days with a move of less than 0.2%, the quietest period since 1927. The volatility index, or Vix, fell to a 23-year low after the French election result.