As we move into Q4, there is a feeling that many of the big decision from some of the major central banks have either been made, or postponed, thus providing us with a relatively stable environment for markets to move. With the summer lull out of the way, there is reason to believe we could be setting up for a break higher in some of the main stock markets.
From a seasonality point of view, the chart below highlights the average performance in the FTSE, DAX and S&P 500 on a month-by-month basis. What is stark is all these markets tend to see periods of weakness during the summer months, which often will run up until the final weeks of September. However, it is also notable that on average, the fourth quarter is usually personified by a period of strength for stock markets, which could be the case once more in 2016.