Oil price uncertainty as a predictor of stock market volatility

In this paper we empirically examine the impact of oil price uncertainty shocks on US stock market volatility. We define the oil price uncertainty shock as the unanticipated component of oil price fluctuations. We find that our oil price uncertainty factor is the most significant predictor of stock market volatility when compared with various observable oil price and volatility measures commonly used in the literature. Moreover, we find that oil price uncertainty is a common volatility forecasting factor of S&P500 constituents, and it outperforms lagged stock market volatility and the VIX when forecasting volatility for medium and long-term forecasting horizons. Interestingly, when forecasting the volatility of S&P500 constituents, we find that the highest predictive power of oil price uncertainty is for the stocks which belong to the financial sector. Overall, our findings show that financial stability is significantly damaged when the degree of oil price unpredictability rises, while it is relatively immune to observable fluctuations in the oil market

Measuring Oil Price Shocks

The role of oil price shocks in US economic activity and inflation is controversial but a key input to current economic policy. To clarify these relations, we employ a more refined measure of oil shocks based on decomposing highly accurate realized volatility estimated using intraday oil futures data. In reconciling prior results, we find that shocks driven by price increases (decreases) are associated with rising (falling) inflation while only a symmetric volatility channel affects economic activity

Takotsubo Syndrome and Nitric Oxide Bioavailability

Takotsubo cardiomyopathy, also known as broken heart syndrome or stress cardiomyopathy, is a form of transient left ventricular dysfunction. Severe apical and mid left ventricular hypokinesis with hypercontractility of the basal segments is observed. Numerous underlying causes and pathophysiological mechanisms have been proposed including sudden sympathetic activation and increase in the circulating levels of catecholamines resulting in multivessel coronary spasm. Another possible mechanism related to catecholamine-mediated myocardial stunning is direct myocyte injury. Increasing data show that endothelial dysfunction and depleted nitric oxide bioavailability are common in patients with Takotsubo cardiomyopathy. In this chapter we examine in depth the relation between endothelial dysfunction and Takotsubo syndrome