The headline risk just became a reality for now. With the Middle East, most notably Libya, dominating the headlines and continued local unrest at the state level.
S&P 500, Standard & Poor’s 500 Index sank the most since August, down 2.05% to 1315.44
The Straits Times index lost 1.68% to 3019.12
It is interesting to note the divergence between STI and S&P 500 for the past 3 months as show below and how long would it last
VIX, the Chicago Board Options Exchange Volatility Index, rose 27% to 12-week high of 20.80. The cautious level has definitely gone up
Crude Oil (April contract) surged above $95 a barrel yesterday boosted by rising violence in Libya, a member of the OPEC.
Gold has regain its 1,400 ground as investors are seeking safe asset again.
Copper (May contract) slumped below $4.34 a pound pressured by declining stock markets.