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VIX soars, high since June-new corona infection surges before US elections-Bloomberg

Volatility has skyrocketed in financial markets following a surge in coronavirus infections in the United States, which is approaching the presidential election a few days later.

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), an indicator of US stock market anxiety, hit its highest level since mid-June on the 28th. Concerns have reignited that the recession will be exacerbated by record numbers of infected people, stronger lockdown measures in Europe, and a slower recovery in the US labor market. Market tensions are already rising as the US elections take less than a week.

“The market has been volatile for some time now, and I think it will continue until a wide range of vaccines are available to overcome the new corona infection,” said Chris Gaffney, President of Global Markets at TIAA Bank. comment. “Every time the infection re-spreads, we see additional behavioral restrictions that affect people’s spending,” he said.

Due to the plunge in stock prices, the S & P 500 stock index fell sharply by 3.5%, and VIX, which shows the expected volatility, exceeded 40. The CBOE / NDX Volatility Index, the implied volatility index of the Nasdaq 100 Index, which has a large proportion of high-tech stocks, has risen to the highest level since April.

Earlier this weekVolatility could remain high after next week’s elections, as lockdowns could occur again in the United States, although more betting on post-election calm. “I don’t think volatility will be removed just because the election day has passed. There is a lot of uncertainty in the market after the election day,” Gaffney said.

Original title:
VIX Spikes to Highest Since June With Economy Threat Growing(抜粋)

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