Market risk, that is to say the variability of returns from one period to the next, or volatility, is one of the many risks faced by investors in equities, bonds and currencies. In the case of U.S. equities, the VIX by the Chicago Board Option exchange (CBOE) measures implied volatility, i.e. the level of volatility implied by the prices of S&P options. It is seen as a forward looking measure, in contrast to realized (or actual) volatility, which measures the variability of historical (or known) prices.
The polls were right this time: In the UK elections, the Conservative Party won a solid majority of 74 seats - the party's largest since Thatcher’s election in 1987. -This will allow them to “get Brexit done” in 2020, reducing the uncertainty in the UK economy. Risks of early elections are rather low in the next three years.
The European Central Bank’s primary task is the pursuit of price stability, which is defined as inflation rates below, but close to, 2% over the medium term. Our analysis shows that inflation and output gap considerations explain half of the ECB’s monetary policy stance over the past decade.