CBOE’s VIX volatility index, Wall Street’s “fear gauge,” hit a seven-week high on Monday morning as the risk of more aggressive rate hikes from the U.S. Federal Reserve and the European Central Bank grew.
The volatility index, or VIX, jumped 7.4 points to 27.46, the highest level since July 14, according to Reuters.
Europe’s benchmark, the EURO STOXX 50 Volatility Index V2TX, jumped 2.7 points to 29,606, its highest level since July 19.
The spike in volatility came as stock markets around the world fell, with the pan-European STOXX 600 index down 1.0% to a more than one-month low. Wall Street futures are 0.8%-1.2% lower.
Fed Chairman Jerome Powell warned on Friday that the US central bank will raise interest rates as needed and keep them there “for some time”.
Meanwhile, ECB Governing Council member Isabelle Schnabel warned over the weekend that central banks must act aggressively to fight inflation, even if it drags economies into recession.
Source: Capital
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