Is August the dangerous month in the financial calendar
August one of the most dangerous months in the financial calendar of any economy? This question popped up after a meltdown in the US market triggered worldwide mayhem last week. Though the US Federal Reserve's Chairman Jeremy Powell rushed to indicate a cut in the interest rates in September, he could not prevent the Japanese stock markets from crashing. People also recalled the crash of the US market after the Iraqi forces under Saddam Hussein crossed the border on August 2, 1990, and invaded Qatar. Fears of the crude oil prices skyrocketing and destabilizing the oil market dynamics hit the capital market hard and it collapsed.
Markets remain calm in September
According to 'The Guardian', policymakers believe August to be a lackadaisical time with no excitement. It is believed that the trading in the stock market remains light, and the market itself remains calm. But people in the field of business and economics also say that if something unusual happens, it has far-reaching consequences.
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Wall Street’s Fear Index remains high in August
Talking to «The Guardian», Henry Allen, macro strategist at Deutsche Bank said that the average spike in the VIX index, also known as Wall Street’s Fear Index, has been higher from July to September. This index measures financial market volatility. The market treads carefully during this period as the late-summer period is often a difficult time.
Russian crisis in 1998
The stock market
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