Mar­ket volatil­ity comes back to haunt in­vestors

Spike in the VIX as sev­eral fac­tors con­tinue to dog sen­ti­ment

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MAR­KET VOLATIL­ITY has spiked again with the in­dices in the US and China serv­ing up 3% in­tra-day de­clines in the past week.

This is re­flected in the VIX (Chicago Board Op­tions Ex­change Volatil­ity In­dex) which mea­sures mar­ket ex­pec­ta­tions of short-term volatil­ity by look­ing at the prices of a wide range of op­tions on the S&P 500.

This key mea­sure of volatil­ity hit 25.23 on 24 Oc­to­ber, its high­est level since ear­lier sell-offs in Fe­bru­ary and March 2018.

The con­cerns driv­ing the big swings in the mar­ket re­main broadly the same with in­vestors fret­ting over ris­ing in­ter­est rates, the Chi­nese econ­omy and a trade war be­tween China and the US. (TS)

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