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 &#34;initial suppression and subsequent rise&#34; 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.
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In August, the global market experienced volatility, including a surge in the VIX index and a sharp drop in US stocks after the release of non-farm data, followed by a rapid fall and rebound. US economic data showed a trend of "first suppression and then rise," reflecting the difference between economic data and market expectations. New non-farm employment data is expected to be released next week, which may also be the worst-performing month for US stocks in a year

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