The Latest News:
- The CBOE Volatility Index, or VIX, was trading around 25.2 Thursday.
- On Wednesday, the VIX touched its highest level since 2011.
- “Fundamentals are a lot worse than they were a few months ago and as well as problems in the eurozone, China is losing momentum inspiring doom and gloom,” Peter Dixon an economist at Commerzbank said in a Wall Street Journal article. “The expectations that we had at the start of the year aren’t being met and that is feeding into a very glum picture.”
- “More investors are positioning to be long volatility, reflective of general concerns and anxiety in the market about prospects for risky assets,” Anand Omprakash, an equity-derivatives strategist at BNP Paribas SA, said in a Bloomberg article. “With the VIX (VIX) breaching levels not seen since June 2012, many volatility-related instruments have seen increased interest in recent days.”
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Max Chen contributed to this article.