Distress signs as oil fall hits stocks and currencies

The rout that swept through asset classes, taking oil below $30 a barrel and European and Asian stocks into bear markets, is pushing up gauges of investor stress around the world.

Bank of America Merrill Lynch Market Risk index, a gauge tracking volatility expectations for equities, bonds, currencies and commodities, has jumped to its highest level since October.

Global stocks have already lost more than $15.6tn since June — about half the gains from a four-year rally — and the yield on 10-year US Treasuries fell below 2%.