YET more evidence of a strengthening US economy saw Wall Street in full scale retreat at the outset of trading yesterday and brought more heavy downside pressure to bear on a weary looking British equity market.
With the US bond market taking another hammering and down over a full point at the outset, after a sharp sell off overnight, the Dow Jones Industrial Average dropped over 50 points in quick time, triggering restrictions on "programme" selling on the US market.
The FTSE 100 index, rounded off an erratic week, which was shortened by Monday's bank holiday, on a depressed note, finishing the session 17.4 lower at 3,867.6. There was no escape for the market's second liners, either, with the FTSE Mid 250 index equally jaded and finally 15.9 off at 4,416.2.
The close to the week in London, which saw the 100 index slide almost 53 points in two consecutive sessions, was in stark contrast to its performance earlier in the week. But with no bids developing and the economic news from across the Atlantic pointing to a rise in US interest rates, dealers took a second hard look at the British market and decided to lock in some profits.
The most likely time for a rise in US rates is after the next meeting of the Federal Reserve's monetary policy making committee scheduled to be held in Washington on September 24th.
Over the week the 100 index showed a loss of 5.3; the FTSE Mid 250 was 59.7 higher.
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