Friday, 8 July 2011

The volatility index hits three-month high as markets waiting for austerity vote

An increase in volatility index indicates a drop in appetite for more risky active such actions. Photo: AFP/GETTY IMAGESBy Rachel Cooper and agencies11: 33 AM BST 27 June 2011

In the persistent concerns that the Greece could by default, the Euro Stoxx 50 volatility index, which is considered a gauge fear market - pink 4 8pc to a maximum of three months fresh Monday.


An increase in volatility index indicates a drop in appetite for more risky active such actions.


The index of volatility VDXAX-NEW pink 4 9pc, while the volatility of the FTSE 100 index climbed 2 8pc.


Their rise came as traders exercised caution before the decision this week by the Greek Parliament on austerity measures unpopular.


Responsible debt country's Parliament will begin Monday a debate in three days on a package of measures aimed at increasing taxes and reducing spending


Without the approval of the package, the European Union and the Monetary Fund International say that they will not publish the fifth tranche of bailout package of €110bn Greece.


Nerves ahead of the established vote Greek bonds under pressure, the Greek bond yields difference of 10 years and German bunds expand on Monday morning.


The Greek and the Germany of 10 years spread 20 points of bais expanded agenda 1,432 basis points.


The debt of other very indebted countries also as cosine and the spread of performance 10 years Italian/German fluctuated around its highest level since the creation of the euro, approximately 218 basis points.


Despite the nerves, London equities have managed to recover some of their composure - with the FTSE 100 index, passing 21 points at 5718.


Last week, the FTSE 100 chalked a weekly loss of 0 3pc, marking the loss fifth weekly reference index; the last time he fell for several weeks has been consecutively in May 2008, when she refused for eight weeks.


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