Implied volatility on EuroSTOXX 50 falls on Obama win

LONDON | Wed Nov 7, 2012 8:22am GMT

LONDON Nov 7 (Reuters) - Implied volatility on European equities, seen as a crude barometer of investor risk aversion, fell sharply on Wednesday after the re-election of U.S. President Barack Obama left the door open for continued monetary stimulus.

The VSTOXX index of implied volatility on the EuroSTOXX50 fell 6 percent to 20.47. If the losses are sustained for the rest of the session, that would mark its steepest one-day fall in a month.
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Comments (1)
Trader_101x wrote:
Volatility has fallen, in the face of yet more protests in Greece, more cuts are to be voted upon by their parliament, although we all know that after implementation spending will rise due to the Greek way of doing things.

Hussein has been re-elected to the USA presidency and is promising to spend America into oblivion; financial dynamite is already being prepared to tackle the fiscal cliff, and postpone it another few years. In all end of 2012 going into 2013 will be a fantastic time for short sellers; if, however, you happen to be a pension fund, try the bookies as a means of investment, it can not be any worse than the stock market at the moment.

Nov 07, 2012 8:51am GMT  --  Report as abuse
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