Global stock markets are seeing record levels of volatility with the five biggest one-day points falls happening in but a month.On Tuesday the Dow Jones Industrial Average saw its biggest one-day slide in additional than three decades.
This was the newest huge swing as investors weigh the economic impact of the coronavirus pandemic.It comes as a key measure of stock exchange volatility, referred to as the “Fear Gauge”, has surged to a record high.
Asian shares continued to ascertain volatile trading on Tuesday with markets in Tokyo, Hong Kong and Shanghai swinging between losses and gains. At an equivalent time US stock market index futures indicated a positive open for Wall Street.
On Monday financial markets slumped, with the Dow losing on the brink of 13% and therefore the S&P 500 falling almost 12%, marking the most important one-day falls for both indexes since “Black Monday” in 1987.
That followed the US Federal Reserve System making another emergency rate cut on Sunday, prompting central banks round the world to ease policy within the biggest coordinated response since the worldwide financial crisis quite a decade ago.
Investors are now concerned that the world’s central banks may have used most of their ammunition to fight the economic impact of the coronavirus outbreak.
Monday’s stock exchange falls follow US indexes on Friday seeing their biggest daily gains since October 2008. That came just each day after the Dow suffered what was then its biggest one-day plunge since the crash in October 1987.
In the last month the Dow Jones Industrial Average has racked up the five biggest one-day points falls in its 135-year history. In March alone the index has also seen its four biggest one-day points gains on record.
Wall Street’s so-called “Fear Gauge” has just topped the amount seen during the financial crisis quite a decade ago. The Chicago Board Options Exchange’s VIX, a measure of stock exchange volatility, surged by almost 43%, surpassing the extent seen in 2008.