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Fear Is Creeping Back Into Markets

  • Credit Suisse fear gauge near record as U.S. stock calls wane
  • Assets from bonds to yen and gold are exhibiting bigger swings
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Will Volatility Remain Suppressed?

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The calm in stocks worldwide is giving way to concern, with investors in Europe and the U.S. rushing to hedge against declines and a Credit Suisse Group AG index flashing a warning as the list of economic and political obstacles grows.

The Credit Suisse Fear Barometer, which measures the cost of buying protection against declines in the S&P 500 Index, neared an all-time high this week. The higher the reading, the more expensive it is to buy protection relative to upside calls, according to Mandy Xu, an equity derivatives strategist at Credit Suisse.