In US data, durable goods orders fell 2.1% in April (forecast -2%). Excluding defence goods, orders fell 2.5% (forecast -2%). Excluding transport, orders were flat (forecast +0.2%).

US share markets rose on Friday. Investors still remain hopeful of a trade deal with China. Late on Thursday, President Donald Trump said that US complaints against telco equipment maker, Huawei, might be resolved within the framework of a US-China trade deal. Financials rose 0.8%. The Dow Jones index ended higher by 95 points or 0.4%. The S&P500 index and the Nasdaq index both rose by 0.1%. Over the week the Dow Jones fell by 0.7%, the S&P 500 lost 1.2% and the Nasdaq fell by 2.3%.

US treasuries were weaker (yields higher) on Friday as investors booked profits ahead of the long weekend. But weaker durable goods orders data provided support for bond prices. US 2-year yields rose by 4 points to near 2.17% and US 10-year yields rose by 3 points to 2.32%. Over the week, US 2-year yields fell by 3.5 points and US 10-year yields fell by 7 points.

Bonjour Europe

European share markets were firmer on Friday. Hopes for a US China trade deal remain. And investors took in their stride news that the UK Prime Minister had resigned, effective June 7. Utilities rose 1.3% with mining and insurers both up 1.1% The pan-European STOXX600 index rose by 0.6%. The UK FTSE lifted by 0.7% and the German Dax gained 0.5%. In London trade, shares of Rio Tinto rose by 1.1% and BHP gained 2.4%.

Hello World

Major currencies were firmer against the US dollar in US and European trade compared with the end of Asian trade. The Euro rose from near US$1.1180 to around US$1.1210 and was around US$1.1200 in late US trade. The Aussie dollar rose from near US68.85 cents to US69.35 cents and was at US69.23 cents in late US trade. And the Japanese yen rose from near 109.72 yen per US dollar to JPY109.27 and was at JPY109.29 in late US trade.

Base metal prices were higher by up to 3.8% on Friday with nickel up the most. But tin fell by 0.3%. Over the week aluminium, copper, zinc and tin fell by up to 2% led by aluminium. But nickel rose by 2.9%

The gold futures price fell by US$1.20 an ounce or 0.1% to $1,284.20 an ounce. The spot gold price was trading near US$1,285 an ounce in late US trade. Over the week gold rose by US$8.50 or 0.7%. Iron ore rose by US$1.20 or 1.2% to US$103.65 a tonne. Over the week iron ore rose by US$3.25 or 3.2%.

G’day Australia

In Australia no major economic data is scheduled. In China, industrial profits data is expected. In the US, markets are closed for Memorial Day.