Euro Stoxx 50 futures turnover chart

Turnover in some American and European derivative contracts has recently been abnormally high - on occasions, 3 per cent of the Euro Stoxx 50 market value has turned over in a day. This may suggest that much of the decline from recent equity market peaks - around 10 per cent depending on the index - could be due to de-leveraging of risk as long positions are closed, rather than a more fundamental change of view about market prospects.

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