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STOCKS NEWS EUROPE-ESTOXX's put/call ratio hits 2-week high

Wednesday, 10 Oct 2012 | 7:46 AM ET

The put/call ratio of Euro STOXX 50 options climbs to a two-week high just below 2, signalling a rise in investors' appetite for protection, as stocks continue to drift lower on the back of worries over global growth and corporate results.

The ratio, which measures the trading volume of put options versus call options and which is used to gauge investor sentiment, has been oscillating between 0.8 and 1.3 in the past two weeks, before closing at 1.89 on Tuesday, signalling that investors are increasing hedges on their stock portfolios to boost protection against a potential sharp drop in stock prices.

A ratio below 1 usually signal bullishness, while a ratio above 1.5 usually signals bearishness.

Reuters Messaging: blaise.robinson.thomsonreuters.com@reuters.net

Keywords: MARKETS EUROPE STOCKSNEWS