Ex-dividend day on the FTSE 100 has seen the index lag behind its peers, but it has doggedly clawed back losses as the broader equity market enjoys yet more gains.
The old saying, ‘never short a quiet’ market continues to prove its worth, and with US markets moving on to new all-time highs August 2016 continues to be a stark change from preceding years.
Another healthy reading on US unemployment claims adds to the positive image created by last week’s non-farm payrolls, with investors clearly happy to pile on more risk thanks to the strong US economic outlook.
UK housebuilders have been, unsurprisingly, hard hit by indications that house price growth is cooling, but the real test will be in the Autumn, when the initial shock of Brexit has worn off.
With mortgage costs likely to go down as a result of the BoE’s actions, there would still seem to be room for bargain-hunting in the sector.
Friday sees the arrival, at last, of some real heavyweight data from China and the US. Poorer numbers from either of these areas might allow shorts a chance at the end of the week, but it is likely to be short-lived.
Much has been made of low volumes prevailing at the moment, but this has really just allowed the FTSE the chance to keep moving higher. For the next two weeks at least, that is unlikely to change.