UPDATE - Following US-China deal, 'fear index' down 15.2%

UPDATES BY REVISING FIGURES

By Gokhan Ergocun and Mucahithan Avcioglu

ISTANBUL (AA) - The VIX volatility index, also known as the "fear index," dropped 15.21% on Monday following the announcement of the trade deal between the world's two top economies—the US and China.

The US and China said in a joint statement on Monday that they had agreed to a broad rollback of punitive tariffs for the initial 90 days.

The US will reduce its tariffs on Chinese products from 145% to 30%, while China's will be reduced from 125% to 10% by May 14.

The VIX, which fell by 15.21% to 18.57 as of 1950GMT on Monday, marked the lowest level since March 27.

It had posted another drop of around 5% on Thursday last week after the US-UK trade deal was reached.

Last week, President Donald Trump announced a trade agreement with the UK in which the US agreed to reduce import taxes on a set number of British vehicles and allow some steel and aluminum into the country tariff-free.

In April, the VIX index reached historical highs by exceeding 52.