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.