Euro STOXX 50 volatility index drops 14 pct

PARIS Wed Jan 2, 2013 4:11am EST

PARIS Jan 2 (Reuters) - The Euro STOXX 50 Volatility Index , or VSTOXX, Europe's widely used measure of stock market risk aversion, dropped 14 percent on Wednesday after a budget deal by U.S. lawmakers buoyed investor sentiment.

The VSTOXX - which is used to measure the cost of protecting stock holdings against corrections - tumbled to 18.45, reversing most of a Dec. 28 surge that had been fuelled by fears a deal would not be struck.

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After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.