GRAPHIC-World markets: Damage assessment

(Refiles Friday item, adding references to Monday trade in

intro, outlook)

By Ritvik Carvalho

LONDON, Feb 12 (Reuters) - It was a brutal week for world

markets: More than $6 trillion in stock market capitalization

lost in a selloff, the biggest one-day spike in the market's

"fear gauge", and burned investors who bet on a period of

extended calm.

With (Other OTC: WWTH - news) global investors still fretting about risks from

looming U.S. inflation data as trading resumed on Monday,

following are eight charts aimed at showing the extent of last

week's damage, giving an end-of-week snapshot of markets, and

helping assess the outlook:

STOCKS SAVAGED

Since the selloff began on Feb. 2, stocks have lost more

than $6 trillion in market capitalisation worldwide, and the

MSCI World Index has erased all of its

year-to-date gains.

As the above graphic shows, the selloff has battered Asian

stocks the most, with Japan's Nikkei 225 and China's two main

indices suffering losses in excess of 8 percent. U.S. shares

come in next, followed by those in emerging

markets , while European shares have suffered

least .

Here is a snapshot of global markets' performance since Jan.

29:

BETS ON EXTENDED CALM BURNED

The VIX index , also known as Wall Street's "fear

gauge", saw its biggest one-day spike higher, forcing an

implosion of products that bet on an extended period of calm.

As the graphic that follows shows, exchange-traded products

(ETPs) that bet on low volatility all took massive hits.

Credit Suisse (IOB: 0QP5.IL - news) said on Tuesday it will shutter the

VelocityShares Daily Inverse VIX Short-Term ETN , likely

leaving holders with just pennies on the dollar.

Nomura Securities will redeem its Tokyo Stock

Exchange-listed S&P 500 Vix Inverse ETN after a sharp equity

selloff since late last week triggered a massive loss in the

product.

Proshares says its short VIX short-term futures ETF will be

open for trading on Tuesday and it expects normal operations

going forward.

EXPLOSION CONTAINED

The spike in the VIX index has been far in excess of that

seen in volatility indexes that track other assets such as

currencies, gold and bonds.

THE TRIGGER

Analysts say the huge spike in the VIX index was due to a

rise in bond yields, on fears that central banks may start

raising interest rates sooner as inflation picks up. The yield

on the U.S. 10-year Treasury is close to a four-year high of

2.885 percent , while J.P. Morgan (Other OTC: MGHL - news) 's Global Bond Index

has fallen to its lowest in four years. Both moves have also

sparked a debate over whether a bull market in bonds is coming

to an end.

THE OUTLOOK

So is this the end of the global equity bull run? Asian

share markets found a semblance of calm on Monday, and analysts

say economic fundamentals remain strong. Citi's Economic

Surprise Index for the Group of 10 countries remains in strongly

positive territory. A positive reading for the index suggests

that economic releases have on balance been beating consensus.

(Reporting and graphics by Ritvik Carvalho; Additional

reporting by Marc Jones; Editing by Hugh Lawson)