LIVE MARKETS-Will the real volatility please stand up?

ReutersJun 17, 2025 12:21 PM

STOXX 600 down 0.6%
Israel-Iran conflict enters 5th day
Oil stocks keep rising, banks fall
BoJ keeps rate steady
Wall Street futures lower

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WILL THE REAL VOLATILITY PLEASE STAND UP?

The vast majority of investors will always have "flare-up in Middle East tension" on their bingo cards at any given time.

This week's outbreak of fighting between Israel and Iran, with the two trading attacks for five straight days, has sent oil to its highest in six months and triggered a few bursts of classic risk-off reactions - stocks down, dollar up, gold up. But while the situation is clearly precarious, the broader markets have shown resilience.

The VIX volatility index .VIX has risen in the last week, but at around 20.8, is well below April's highs above 60 and nowhere near the records above 80 struck during the 2008 financial crisis.

Analysts say volatility has been contained, for now, by the fact that there have been no reported disruptions to crude oil supply. A key concern is Iran blockading the Strait of Hormuz, through which about a fifth of the world's daily oil demand flows. But that has not happened either at this point. A wider escalation or any physical disruption to regional crude supply could upend the volatility picture, along with everything else.

(Amanda Cooper)

EARLIER ON LIVE MARKETS:

EU DEFENCE: UBS FLAGS RISKS OF SLOWING REVISIONS CLICK HERE

EM ASIA AND ROTATION OUT OF US STOCKS CLICK HERE

STOXX AT 3-WEEK LOW, OIL STOCKS TOP GAINERS IN JUNE CLICK HERE

BEFORE THE BELL: EUROPEAN FUTURES FALL, RENEWABLES EYED CLICK HERE

ISRAEL-IRAN TRUCE HOPE IN TATTERS CLICK HERE

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

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