US

11/03/2010

It was a strong month for US equities. Economic data was generally upbeat, with better-than-expected readings from the jobless rate, industrial production as well retails sales, boosting confidence. The Fed’s move towards withdrawing its extraordinary support measures was also a key theme over the month after Bernanke outlined the Fed’s exit strategy. Expectations that the Fed would bring forward the timing of its first policy rate hike rose after the discount rate was raised by 25 basis points. However, Fed officials were quick to refute this speculation, stressing the move was aimed at normalising market conditions and that there were no plans to raise the Fed funds rate.