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On the radar: St. Louis Fed’s Financial Stress Index lowest in 17 months

The St. Louis Fed’s Financial Stress Index declined to -1.353 in the May 3 week, its lowest since -1.391 in the January 26, 2018 week. The reading was taken before this week’s reports from the Fed warning on risky corporate debt levels. Markets have also suffered some further uncertainty on trade policy with the imposition of punitive tariffs on goods from China.

These events may take some of the gloss off the historically mild stress readings in the coming week’s data, but at the moment levels show no particular cause for concern.

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