## Figure 1.1. Recent Market Developments

## Source details

**Canonical URL:** [Figure 1.1. Recent Market Developments](https://www.imf.org/-/media/files/publications/gfsr/2018/oct/ch1/pdf/figure1-1.pdf)

## Other formats

- [Markdown version](/-/media/files/publications/gfsr/2018/oct/ch1/pdf/figure1-1.pdf.md)
- [Structured JSON version](/-/media/files/publications/gfsr/2018/oct/ch1/pdf/figure1-1.pdf.json)

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### Dates and range
- March 29, 2018
- September 14, 2018
- Range between March 29, 2018, and September 14, 2018

### Summary takeaway
- Risk appetite has remained strong, as reflected in low volatility and higher U.S. equity valuations.
- However, higher U.S. interest rates and a stronger U.S. dollar have led to lower emerging market equity prices and wider debt spreads.

### Data sources and notes
- Sources: Bloomberg Finance L.P.; and IMF staff estimates.
- Note: EM = emerging market; EURUSD = euro-U.S. dollar; FX = foreign exchange; JPMVXYEM = JPMorgan’s Emerging Market Volatility Index for foreign exchange; MSCI = Morgan Stanley Capital International; USDJPY = U.S. dollar-Japanese yen; USDTRY= U.S. dollar-Turkish lira; VIX = Chicago Board Options Exchange Market Volatility Index; VSTOXX = Dow Jones Euro STOXX 50 Volatility Index; VXEEM = Chicago Board Options Exchange Market Emerging Markets Exchange-traded Fund Volatility Index.

### Market performance dashboard (visual description)
- Each marker is a 30-day moving average of daily percentile rank in relation to the asset’s five-year history.
- Color interpretation:
  - Closer to red represents higher equity prices and lower corporate bond spreads and volatility.
  - Closer to blue represents lower equity prices and higher corporate bond spreads and volatility.
- Axes/legend concepts:
  - Horizontal/vertical dimensions indicate relative standings for: Equity prices; Credit spreads; Equity volatility; Rate volatility; FX volatility.
  - Color and position jointly indicate Lower volatility / Higher volatility and Higher price / Lower price and Lower spread / Higher spread.

### Assets and indicators shown
- Equity indices and sectors:
  - S&P 500
  - S&P 500 financials
  - Nikkei (Japan)
  - Euro Stoxx Financials
  - MSCI EM
  - Euro Stoxx 50
  - Shanghai Composite (China)
- Credit and sovereign spreads:
  - U.S. investment grade
  - EU investment grade
  - U.S. high yield
  - EU high yield
  - EM corporate
  - EMBI global
- Volatility indices and rate/FX measures:
  - VSTOXX (Euro)
  - VIX (U.S.)
  - VXEEM (EM)
  - EU 1y10y swaption
  - U.S. 1y10y swaption
  - Japan 1y10y swaption
  - USDJPY 6m
  - EURUSD 6m
  - JPMVXYEM (EM)
  - USDTRY 6m

*Source: figure1-1*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2018/oct/ch1/pdf/figure1-1.pdf_