Markets across the globe were rocked by volatility from sources new and old last month.
The old was a play-by-play repeat of the “taper tantrum” as capital fled from emerging markets in anticipation of a September date for the first rise in U.S. rates since 2006.
The new was triggered by evidence that the rollercoaster performance of equity markets in China (previously judged to be the result of high-octane day-traders learning the pain of a margin call) was also the first sign of a stall in the world’s economic growth engine.
August was a month of records – the VIX® recorded its biggest ever monthly gain, the average correlation between European equities rose to their highest ever.