Financial Market Stress Little Changed over Previous Week

5/8/2014

St. Louis Fed Financial Stress Index Chart

The St. Louis Fed’s Financial Stress Index (STLFSI) was little changed over the past week. For the week ending May 2, 2014, the STLFSI measured -1.171, up slightly from last week’s revised value of -1.179. Year-to-date, the STLFSI has averaged -1.081; this is modestly higher than its average of -1.114 over the comparable period in 2013.

 weekly change

Over the past week, eight of the 18 indicators contributed positively to the weekly change in the STLFSI, five more than the previous week. The largest positive contribution was made by the expected inflation rate over next 10 years (BIR_10yr), followed by the Merrill Lynch Bond Market Volatility Index (Mlynch_BMV_1mo). Seven indicators contributed negatively to the change in the STLFSI over the past week, which was four less than the previous week. The two largest negative contributions (equal in magnitude) were made by the yield on Baa-rated corporate bonds and the spread between yields on 3-month Libor and the Overnight Index Swap spread (LiborOIS_3mo).

  yearly change

Over the past 52 weeks, 10 of the 18 indicators contributed negatively to the change in the STLFSI and eight indicators contributed positively to the index. The STLFSI is about unchanged from its value a year earlier (-1.164). The STLFSI has been below zero for 121 consecutive weeks.

For an explanation of the 18 component variables in the STLFSI, refer to the STLFSI Key.