[Asia Economy Reporter Jeong Hyunjin] The so-called "fear index," the U.S. Volatility Index (VIX), recorded its lowest level in over two months on the 11th (local time). The anxiety that had surged due to increased market uncertainty amid the impact of the novel coronavirus infection (COVID-19) is somewhat calming down.
According to the Wall Street Journal (WSJ), the VIX closed at 27.57 on the Chicago Board Options Exchange (CBOE) on that day, down 1.47% from the previous trading day. This is the lowest level since February 26, about two months ago.
The VIX had soared to an all-time high of 82.69 on March 16, when COVID-19 was hitting the U.S. and Europe hard and confirmed cases were occurring one after another, but it has been gradually stabilizing since then. During a similar period, the New York Stock Exchange index rose about 30% from its March low.
Additionally, recently, as governments around the world have partially eased lockdown measures and resumed economic activities, a market sentiment has formed that the recession situation is somewhat improving. CNBC reported that although the U.S. economy nearly came to a halt in March and April due to the impact of COVID-19, many investors and managers have seen signs of recovery in recent weeks, and there is evidence that the sharp decline has at least bottomed out.
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