Even after the S&P 500 and Shanghai Composite indexes finally joined their UK and European counterparts on a slightly more even keel, given the amount of noise, there is still no telling which direction markets are about to take.
But are there any particular indicators that can prove helpful?
“You need to have a wide perspective on markets and look at a lot of different factors,” said Bambos Hambi, head of fund of funds at Standard Life Investments. “At the moment China seems to be the catalyst for the current problems – but it is not all about China.”
Evenith that said, is there a data strand or graph that investors are using as their stand-out market bellwether?
“US consumer confidence numbers are right up there in terms of importance,” said Gary Potter, co-head of F&C’s multi-manager team. “It is a lagging indicator, but it does tell you quite a bit.
“Consumer confidence feeds off inflation expectations, wage growth, interest rate expectations and job growth, and is the bellwether that I would look at if I had to pick one.”
Despite US consumer sentiment being at its lowest since November – registering 92.9 in August against 93.1 a month earlier – Potter believes that there are tailwinds blowing up.
