Global Trade Progress Eases Market Concerns
(MENAFN) The VIX volatility index, frequently referred to as the "fear index," experienced a notable decline of 7.3 percent on Monday after news emerged of a trade agreement between the globe’s two leading economic powers—the United States and China.
In a mutual declaration issued on Monday, both nations confirmed that they had consented to a substantial easing of imposed tariffs for an initial period of 90 days.
This development marks a significant thaw in the prolonged economic tensions between the two countries.
According to the statement, the US intends to lower its duties on Chinese imports from 145 percent to 30 percent, while China plans to decrease its tariffs on American goods from 125 percent to 10 percent by May 14.
The VIX, which dropped to 20.30 as of 0810GMT on Monday, had already recorded a decline of approximately 5 percent the previous Thursday, following the announcement of a trade pact between the United States and the United Kingdom.
That earlier agreement, unveiled by Leader Donald Trump, involved the US reducing levies on a select number of British-manufactured cars and allowing certain steel and aluminum imports to enter the American market without tariffs.
Back in April, the VIX had soared to unprecedented levels, surpassing 52, reflecting heightened uncertainty in financial markets.
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