News & Insights

For those investors enjoying a summer break from watching the markets, the headline results for August give the impression of a relatively subdued month, with the estimates for the ARC Indices being mildly positive. Sterling investors experienced currency headwinds as a weakening US Dollar damped returns. 

However, the headline numbers mask the fact that volatility returned to financial markets during the month as concerns about the AI boom; risks of a US recession; and the increase in interest rates by the Bank of Japan combined to trigger a global sell off, causing the CBOE Volatility Index (‘VIX’) to reach highs not seen since March 2020. 

While the swift recovery of markets will be welcomed by investors, many commentators expect further volatility before the year is out.