Volatility index falls to 2016-low as oil stabilises

VIX declined since last month

Volatility, as measured by the VIX index, has fallen to its lowest point this year, as a recent stabilisation in the oil price provides "welcome respite" to investors.

The CBOE Volatility Index (VIX) has fallen to around 13.3 points, a decline of 1.2 points over the month, and had touched below 13 during that time; its lowest level in 2016 so far. This compares to a 200-day average of 18.6 points. In January, the VIX jumped 10% on the New Year volatility, reaching 27 points, amid fears of a China slowdown and tumbling oil price More recently, markets have showed relative strength in recent weeks with most developed and emerging markets posting gains. The FTSE 100 and S&P 500 are up 3.5% and 2.4% respectively, while the MSCI Emerging Markets index...