Market stress signals are flashing bright

As a rout in global equity markets deepened on Monday amid tariff turmoil, the signs of stress across financial markets have started to flash brightly.

"It's quite clear that the market is in a panic," said Van Luu, global head of FX and fixed income strategy, Russell Investments.

 The asset manager's gauge of investor risk aversion, which incorporates pricing trends and sentiment indicators, was approaching levels last seen in September-October 2022, when global central banks started an unprecedented run of interest rate hikes.

 Here's a look at just some of the indicators on investors' watchlist.

VIX JUMPS

Wall Street's closely watched fear gauge, the VIX volatility index (.VIX), opens new tab, jumped to 60 on Monday - its highest level since a global market selloff in August. It closed above 45 on Friday for the first time since the 2020 COVID-19 crisis, and jumped the most on a single day since then.

In Europe, a similar indicator -- the Euro STOXX Volatility Index (.V2TX), opens new tab -- was set for its biggest one-day surge in absolute terms since October 2008, the depths of the global financial crisis.

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