Macro Uncertainty Fuels Hedging Demand Ahead Of FOMC

Summary Risk assets sold off last week as oil prices jumped to a 3-month high on escalating Middle East tensions and US core inflation surprised to the upside. The VIX Index gained 1.3 pts last week to 15.8%, with more than half of the move coming from a steepening in SPX skew and convexity. Tail hedging in the equity market has picked up as well, particularly via VIX options. Athitat Shinagowin/iStock via Getty Images By Mandy Xu Cross-Asset Volatility : Risk assets sold off last week as oil prices jumped to a 3-month high on escalating Middle East tensions and US core inflation surprised to the upside. Oil volatility jumped This article was written by Cboe Global Markets 940 Followers Follow Cboe Global Markets (CBOE), a leading provider of market infrastructure and tradable products, delivers cutting-edge trading, clearing and investment solutions to market participants around the world. The company is committed to operating a trusted, inclusive global marketplace, providing leading products, technology and data solutions that enable participants to define a sustainable financial future. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives and FX, across North America, Europe and Asia Pacific.