Call it "panic exhaustion." The Vix index has been trading at elevated levels for almost three months now, and that's a long time. Hedgers get tired of paying huge premiums for options that don't pay off, while sellers of options feel better and better as time passes and they collect their option premiums. Taking risk becomes more attractive that avoiding it. Fear continues to run high, and that is depressing the prices of most risk assets, but the passage of time without the fears being realized is the enemy.
Eurozone swap spreads have been trading between 90-100 bps for almost two months, while U.S. swap spreads remain at levels that are more or less "normal." There has been no contagion to date, and the U.S. economy continues to slowly improve.
Copper futures sold off in September as everyone rushed for the exits, but prices are coming back as economic life goes on and underlying demand remains relatively strong.
Same goes for crude oil futures, which have rebounded by a hefty 20% since the peak of the panic (October 3-4).