Deep Dive: Odds of Rate Hike, Copper Prices, CDS Spreads

The video discusses the market's assessment of the probability of a Federal Reserve rate hike by the end of the year, noting a decrease in expectations. It explores the relationship between copper prices and China's economic growth, highlighting copper as a proxy for China's industrial activity. The video also examines credit default swaps as a measure of risk, noting a shift in risk perception from emerging to developed markets. Finally, it addresses political risks affecting market spreads, with a focus on Europe and the US post-Brexit.

What was the market's perception of the probability of a Fed hike by the December meeting?

• 45.2%

• 49.2%

• 50.0%

• 55.0%

How is copper used in relation to China's economy?

• As a currency stabilizer

• As a proxy for growth

• As a measure of inflation

• As a trade barrier

What is the relationship between the Chinese Yuan and copper prices?

• They move in opposite directions

• They are unrelated

• They move together

• They stabilize each other

What trend is observed in credit default swap spreads in developed versus emerging markets this year?

• Spreads are narrowing in both markets

• Spreads are widening in both markets

• Spreads are climbing in developed markets and falling in emerging markets

• Spreads are falling in developed markets and climbing in emerging markets

Which regions have seen a shift in political risk focus post-Brexit?

• Middle East and North America

• South America and Australia

• Europe and the US

• Asia and Africa