Market volatility comes back to haunt investors
Spike in the VIX as several factors continue to dog sentiment
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)