A favorable quarterly report from Nvidia brought a very good start to the session for risk assets, particularly equities, with the Nasdaq up more than 2.5% at one point, but the tone changed completely with an aggressive selling wave after midday, which led the indices to close sharply in the red, with the Nasdaq ending -2.2% and the S&P -1.6%, an intraday swing of almost 5% in the case of the Nasdaq. On the other hand, treasuries acted as a safe haven, with yields falling 4bps across the curve, while commodities fell 0.5-1%. The VIX soared to 26.5, the highest level since April, while the dollar closed flat.

Venezuelan bonds slipped 0.25pts from yesterday's highs after the White House said there are no negotiations with Venezuela, and the Colombian foreign minister said his statements yesterday were taken out of context.

Latin American credits were almost unchanged despite the risk-off tone of equities, with most of the region's major names remaining between flat and down 0.1pts, with only sovereign Argentina falling 0.5pts.