Wall St. “fear gauge” hits record as Asia-Pacific markets open broadly lower



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Wall St. “fear gauge” hits record as Asia-Pacific markets open broadly lower

On Thursday, the 12th of March 2020, the Cboe (Chicago Board Options Exchange) Volatility Index, a popular measurement of volatility gauge based on S&P 500 listed options which analysts often contemplated as the “fear gauge” of the Wall St.

traders, had posted its biggest ever leapfrog on record, as US stocks had confirmed an end to their record streak of bull-run and Nasdaq alongside S&P 500 had entered in to a bearish territory for the first time since the ages of great financial depression of 2008.

On Thursday’s (March 12th) Wall St., the “fear gauge” had surged by nearly 40 per cent to 75.57 compared to Wednesday’s (March 11th) closing reading of 53.9, while the panic indicator in the Wall St.

had hit its highest level since November 2008, as investors remained spooked over frets of a clattering coronavirus pandemic alongside a holocaust in trade over the coming weeks following Trump Administration’s cancellation of all kinds of visas for European nationals except United Kingdom.

Meanwhile, echoing the leads of Thursday’s (March 12th) Wall St. alongside Europe’s regional benchmark STOXX 600 which had witnessed its steepest intra-day plunge on record, Asia-Pacific markets had opened broadly lower on Friday (March 13th), as in the late-morning Asia-Pacific trading hours, Australia’s ASX 200 was trading 8.29 per cent lower to 4,894.70 and Japan’s Nikkei 225 shrugged off just a notch shy of 9 per cent to 16,663.00, while Hang Seng was down by 7.09 per cent to 22,474.4 in pre-market trading and New Zealand’s NZ 50 was jolted 6.56 per cent lower to 9,655.12.