Volatility index, abbreviated VIX but also referred to as the fear index, rose to its highest level in six months when the American stock markets closed on Tuesday. VIX, which measures volatility in the American S & amp; P 500 index, rose by 11.3 percent on Tuesday to listing 17.20.
it is called just for fear index because investors at large fluctuations, that on Tuesday’s stock exchanges, are scared. Meanwhile, the index can be deceiving. Months before the big financial crisis erupted in 2008 low VIX at historically low levels, which in retrospect has been said should been seen as a warning signal.
To investors nervous clearly visible on the world stock markets. On Tuesday, the Stockholm stock exchange fell by 2.1 percent, the Frankfurt Stock Exchange by 1.3 percent and the Dow Jones index fell by 1.6 percent. IMF, International Monetary Fund lowered on Tuesday its forecast for the global economy – which caused Wall Street to press the sell button.
IMF’s forecast on Tuesday reinforced the impression that something is not right in the global economy . IMF talks about a 40 per cent risk of recession in the euro zone and a 30 percent probability of deflation in the euro zone.
– France does not lift, Italy looks to be on the way down and the locomotive Germany has lost momentum. The only bright spot in the euro zone is Spain. At a time when the economy is fragile, it raises the question of what it takes to tip over into a new recession, says Elisabet Kopelman, macro strategist at SEB.
– It is interesting to note for the IMF is that it is an increasingly two-tiered growth. It looks better for the United States, but on the other hand, the outlook for the euro zone continued to deteriorate, she continues.
It’s not only stock markets sinking. Although the price of crude oil runs. Brent North Sea oil fell to the lowest level since June 2012 and is now trading around 91:20 per barrel. Crude oil costs 87:95 barrel.
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