Bloomberg Market Wrap 5/9: SKEW Index, Oil and German Yields

The video discusses the Skew Index as a real fear indicator, contrasting it with the VIX. It highlights market divergences and potential pullbacks in the S&P 500. The commodities market, particularly oil and gold, is analyzed in light of trade tensions. The video also examines global negative yield trends and central bank actions, emphasizing the role of currency basis trades in turning negative yields into positive returns.

What does the skew index, referred to as the 'real fear index', indicate about investor sentiment?

• Investors are bearish and concerned about potential shocks.

• Investors are bullish and expect market stability.

• Investors are optimistic about market growth.

• Investors are indifferent to market changes.

How did the skew index behave as the S&P 500 reached an all-time high?

• It showed no correlation with the S&P 500.

• It increased alongside the S&P 500.

• It decreased significantly.

• It remained constant.

What recent trend was observed in oil prices according to the commodities section?

• Oil prices have been unaffected by trade tensions.

• Oil prices have been stable with no significant changes.

• Oil prices have been steadily increasing.

• Oil prices have been sliding but show signs of a potential rebound.

What is the perception of negative yields in the global market?

• They are ignored by most investors.

• They are considered a safe haven.

• They are expected to turn positive soon.

• They are seen as a major risk.

What might central banks around the world consider doing in response to current market conditions?

• Eliminating interest rates altogether.

• Maintaining current interest rates.

• Scaling back on rate hikes.

• Increasing interest rates significantly.