Financial Times FT.com

Overview: US fear gauge signals signs of improvement

By Dave Shellock

Published: May 19 2009 18:59 | Last updated: May 19 2009 22:35

Risky assets such as equities and commodities made fresh progress on Tuesday amid further signs of improvement in financial and economic conditions, although concerns remained that recent gains might have been overdone.

The Vix volatility index – also known as Wall Street’s “fear gauge” – finally dropped below the 30 level for the first time since the collapse of Lehman Brothers last September, suggesting that investors feel less need to insure their equity portfolios using options.

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