Friday’s session wasn’t too bad, with modest gains for equities on both side of the Atlantic. For the US this wasn’t so much driven by positive economic news – the data that was out was atrocious, with new home sales for July falling 13 per cent. Whether it was the fact that punters know this is a volatile data series, or because bad news means the Fed may delay a taper – who knows. US Treasury yields were certainly lower – the 10-year off about 7 bps to 2.81 per cent, so it could be the case that the market thinks it more likely that doves will win the day on the FOMC (as if that was ever in doubt).
Whatever the case, the S&P500 closed 0.4 per cent higher, the Dow was up 46 points and the Nasdaq was 0.5 per cent higher (3657). Not bad, and for the week the S&P was up 0.5 per cent following falls over the previous two.