Euzo zone 'fear' gauge hits near 7-year low

The Euro STOXX 50 Volatility Index fell 3.6% to 14.51 volatility points

 

A closely watched gauge of European stock market volatility hit a near seven-year low on Friday, a further sign of growing investor confidence that economic conditions in the region are stabilising.

The Euro STOXX 50 Volatility Index, which reflects options pricing and demand to protect against falls in the underlying cash market index, fell 3.6% to 14.51 volatility points, a level not seen since early 2007.

The VSTOXX has been falling in a fairly steady fashion since hitting 59.8 points in 2011, helped by intervention by the European Central Bank and other central banks across the world to shore up the debt and funding markets.