As the month winds to a close for UK investors, and news flow dries up around the globe, most traders have taken the chance to trim positions and book gains after strong rallies in recent sessions.
On a day of little news, there is scant reason to chase stocks higher, but that does not mean the bounce has come to an end. September usually sees the start of a bumper season for equities, so bullishness should grow as the new month gets underway. Miners have led the way higher in London, with a smattering of oil stocks that have found some support following yesterday’s spike in crude prices.
As we look to next week, attention will remain fixed on what China and the US have to offer. PMI figures from the former will be crucial, especially since we get both the official and the private sector assessment of the situation, while non-farms on Friday will garner the usual attention.
The weekend’s Jackson Hole summit should not unduly disturb matters, especially given that September is now practically a non-starter for rate hikes.