Stocks Stall as VIX Hits Pre-COVID Low, Market Sentiment Wavers

Global markets pause as Wall Street's VIX index hits its lowest level since before the COVID-19 pandemic, raising concerns about a potential demand for options hedging. Bond market volatility measures also drop to their lowest since September. Despite the upcoming auction of new U.S. Treasury notes, Treasury yields have slightly increased. The Federal Reserve maintains that it is too early to discuss interest rate cuts. Chinese stock benchmarks continue to underperform, while profit growth at China's industrial firms slows, indicating a need for further policy support. Small cap Chinese stocks rise as the Beijing Stock Exchange implements a new policy preventing major shareholders from selling stock.