May 24, 2022 Trending New York News

What is Vix, the index of fear that has returned to the markets

It is a sort of barometer on the volatility and nervousness of the financial markets, which had been put on mothballs after the 2008 crisis. It is now at 53, in normal times it travels below 20 points.

It is a sort of barometer on the volatility and nervousness of the financial markets, which had been put on mothballs after the 2008 crisis. It is now at 53, in normal times it travels below 20 points.

The sharp drop in oil prices and the spread of coronavirus have “awakened” the Vix index, the one that collects the state of nervousness and volatility of the markets in a single issue, and which today travels above 53 points.

A sort of ‘thermometer’, a sign of the suffering of the price lists and the pessimism of the investors, which had remained ‘under control’ since 2008, the year of the Lehman Brothers crack when it broke through 60 points. The Chicago Board Options Exchange Volatility Index, to reveal the dynamics that are moving on the markets, is based on the performance of the options on the S&P 500 index listed on the Chicago market (Cboe) but is kept an eye on traders all over the world. world. In ‘normal’ times the Vix travels under 20 points.

At the start of the week, the “fear index” instead increased by 23% to close with a surge to 54.46 (after hitting 62 intraday), on the day Wall Street suspended trading for 15 minutes with the drop in the S&P 500 was almost 8% and the massive inflows of US Treasury bonds pushed the entire yield curve below 1% for the first time. And with gold, a good refuge par excellence, which has touched the highest levels for seven years. The thrust has also infected the European and Asian stock exchanges, not even sparing the squares of cryptocurrencies.

Markets now expect further monetary easing to support the economy and that the Federal Reserve will cut interest rates for the second time this month as governments prepare to launch aid and support packages to the economy from the United States. to Japan via Italy and Europe. “Investors are looking for signs that there is light at the end of the tunnel,” said Adam Sarhan, chief executive officer of 50 Park Investments, in New York. But it is not optimism that seems to prevail.

Wall Street attempted and rebounded yesterday, with the Dow Jones gaining 4.9%, the S&P 500 4.94% and the Nasdaq 4.95%. But volatility is just around the corner and the news that arrives on the health front, with over 118,000 cases and at least 4,290 deaths, does not bode well.

Banner
Related Posts

3 Things That Ninos Attributes To His Success In Dropshipping

March 26, 2021

March 26, 2021

Ninos Shamo worked extremely hard in the dropshipping business that he had just launched after watching some tutorials from YouTube....

From a Mini Business to an International Business Giant – SOJOS Is Taking Eyewear Industry by Storm

March 31, 2022

March 31, 2022

SOJOS started as a B2B business in 2011. Working as a supplier, they produced orders for many famous American and...

Meet Content Creator John Jackson: An Influential Wine Collector and Educator on Social Media

April 18, 2022

April 18, 2022

Content that is educational and entertaining has been increasing in popularity on social media and is a very effective way...

How Kodi Brown Is Trail Blazing In The E-Commerce Industry And Not Leaving Others Behind

March 26, 2021

March 26, 2021

According to Statista, in 2019, retail e-commerce sales worldwide amounted to 3.53 trillion US dollars, and e-retail revenues will grow to...

Jack Kellogg Giving His Parents the Life They Deserve

October 2, 2021

October 2, 2021

Jack Kellogg did not just become a millionaire overnight. He tirelessly worked for long hours and sacrificed his personal life...

So the coronavirus is bringing the auto industry to its knees

March 5, 2020

March 5, 2020

Clelia Crisci, president and CEO of Lapo Compound at AGI: the situation is dramatic, perhaps we would have done better...

“Motivation Is What Gets Me Started and My Hard Work Is What Led Me to Where I’m Today” – Joshua Jones

March 22, 2022

March 22, 2022

A highly talented interior designer, Joshua Jones, believes in perseverance and hard work. He lives by the maxim from I....

Online Marketing to Survive the Covid-19: How Harley Cannard Leads Companies to Boost Their Brand on the Web

March 26, 2021

March 26, 2021

Although society is constantly changing, forcing companies to reinvent themselves to satisfy demands, events such as Covid-19 have represented a...

Top 3 Things to Keep In Mind When Creating and Designing Fashion Wear, According to the famous influencer Nikita Karizma

May 9, 2022

May 9, 2022

Nikita Karizma is a British-Indian fashion designer who runs her namesake designer brand. Nikita designs fashion wear, contemporary clothing, fashion...

Inventor Curren Krasnoff Contributes to Safety on the Road by Introducing New Technologies for Vehicles

May 10, 2022

May 10, 2022

The rate of technological advancement in the vehicle sector has been phenomenal since its inception. Safety has consistently been prioritized,...

Entrepreneur Who Changed Career Paths to Pursue Passion: Meet Broker Kendra Conyers

February 15, 2022

February 15, 2022

Changing careers comes with many risks. Confident people can take risks and be successful; Kendra Conyers is one of them....

The Truth About Bonni3

March 26, 2021

March 26, 2021

Who is Gabriel Comfort? Gabriel Comfort, better known by her stage name “Bonni3” is not your typical music artist. Her...

Oil: American shale oil producers are already in crisis

March 10, 2020

March 10, 2020

If prices stayed around $ 30, production could drop by 2 million barrels a day from the end of this...

6 Reasons Why You Should Look for Freedom in Life by Influencer Charles Thompson

March 29, 2022

March 29, 2022

What is freedom and why do people strive to get it? Charles Thompson is a freedom educator who highlights the...

Meet Arjun Dingra: A TaeKwon-Do Coach and Thriving Businessman of the West Coast

December 2, 2021

December 2, 2021

Arjun Dingra knew right from a young age that he was destined to be an entrepreneur. As an elementary kid,...

Comments
Leave a Reply

Your email address will not be published.

10 + eleven =