China’s benchmark for property stocks is close to slipping below its 200-day moving average, signaling losses in global stocks and commodities and gains in the US dollar, according to Bank of America Corp.

The Se Shang Property index’s 200-day moving average is at 4,214.70, 4.5 percent below the index’s close of 4,413.23 on 30 Sept. The index, which is down 28% from its July high, is an 'exceptional' predictor of global markets, Michael Hartnett, New York-based chief global equity strategist at Bank of America, wrote in a report.

'Watch the Shanghai property index in coming weeks,' Hartnett said in the report entitled 'world’s lead indicator on a precipice.'