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Wall Street’s so-called fear gauge slid to its lowest level in more than a decade as US stocks inched closer to new all-time highs on Monday.

The Chicago Board Options Exchange’s implied volatility index, also known as the Vix, slipped as much as 9 per cent on Monday afternoon to touch 9.90, its lowest mark since February 2007.

The index has remained surprisingly subdued over the past year, despite a string of geopolitical events that investors and strategists had warned could rock markets, including US and French elections and the Brexit vote in the UK.

The Vix has averaged 13.6 since last May and just 12 since the start of the year, more than 30 per cent below its historic average of 20.

Copyright The Financial Times Limited 2017. All rights reserved.
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