News

The global market in August was indeed turbulent.

After the release of the August non-farm payroll data, the market was shocked. We witnessed the sharp rise of the VIX index (Chart 1), the plunge of the US stocks (Chart 2), and then were equally surprised to see the rapid decline of the VIX and the strong rebound of the US stocks.

The economic data in the United States in August replayed the "initial suppression and subsequent rise" pattern seen in July (Chart 3 shows the US economic surprise index, indicating the difference between the released economic data and expectations).

Next, we are about to face the worst month of the year for the US stocks, as the non-farm payroll data for the next week is approaching.