Ross Greenwood: Good morning, and that’s what it’s all about.
It’s all about the attitude, it’s all about the spirit of the people, because while the images from Westminster, and Manchester; now from London, the Borough Market over the weekend are truly shocking the point of the attacks to strike at the confidence of Western communities around the world, is having less impact than those who carry them out would imagine, or even desire.
Now to work that out, you look at the stock market as well as those concerts.
The ultimate barometer of community confidence is the share market needs.
If these attacks strike at the heart of British society, the stock market should be tanking but no.
In fact, the stock market‘s been doing exactly the opposite.
Notwithstanding the current general election, the Brexit vote, and the near collapse of Greece, in the past few years the British stock market is at all-time record highs.
There’s another measure of confidence of so-called VIX index.
It measures expected market volatility.
For a rough rule of thumb, a score below 20 means volatility expectations are low.
You can see the spikes here on a charts – that’s Brexit, Greece, Europe – but you can see some response to the Manchester attack just a couple of weeks ago.
But it’s short-term, it’s certainly not significant.
Come to Australia, where the national terrorism alert here is now probable, that’s mid-range, in the advice given by the government.
You can also see in our stock market, the volatility measure here is almost asleep.
So this is the VIX index uhh…VIX index of volatility over one year here in Australia.
It’s quiet – none of this means an attack might not happen but it does show that terrorists are not achieving the sense of panic in the community or the economy.
Instead, I’d suggest there’s a determination, a very strong determination, to stop these attacks and those who carry them out.