US equities were in a moderately positive mood at month end (S&P500 up 0.8%), although bond yields were slightly lower and the US dollar reversed sharply from a two-year low.

Sentiment was depressed by sombre US economic data. The S&P500 is down 0.5%, and the US dollar and bond yields are slightly lower.

The FOMC kept policy settings unchanged but the narrative was dovish. Short-maturity bond yields fell and US equities rose (S&P500 up 1.1%), while the USD is slightly weaker.

Bond yields fell after the US Federal Reserve said it would extend its emergency lending programmes until year-end. Otherwise the new flow was light, currencies were little changed, and the S&P500 is down 0.6%.

Sentiment was moderately upbeat, helped by progress on further US fiscal stimulus and vaccine tests in final stages. The S&P500 is up 0.7%, the US dollar fell to a two-year low, and bond yields are higher.

Sentiment was capped by continuing US-China tensions, delays in further US fiscal stimulus, mixed US data (but solid European PMI data), and elevated COVID cases. The S&P500 fell 0.6%, while currencies were mixed and bond yields closed slightly higher.

Sentiment weakened amid growing US-China tensions and disappointing US jobless claims data. The S&P500 fell 1.2%, defensive currencies outperformed, and bond yields fell slightly.

Sentiment was mixed, with recent optimism dented by news of US-China consulate closures. The S&P500 is up 0.6% to a fresh five-month high, while currencies and bonds fluctuated for little net change.

Sentiment remained upbeat, and was reflected most clearly in currency markets, the defensive US dollar falling to a five-month low. The S&P500 is up 0.2% to a fresh five-month high, and major commodities prices are higher, while bond yields are little changed. Yesterday’s historic agreement on fiscal burden sharing in Europe was a catalyst, as were the likelihood of further US stimulus and promising vaccine news.

Sentiment was upbeat, lifting US equities to record highs in the case of the NASDAQ100, the S&P500 up 1.0% to a five-month high. The US dollar is slightly lower, while bond yields were rangebound.