How’dy USA

In US data, the producer price index (PPI) rose by 0.1% (consensus: flat) in June to 1.7% (consensus: 1.6%) in the year.

US share markets rose to record highs on Friday. The S&P 500 index closed above the 3,000 point level for the first time. Shares of Dow Inc. led the Dow Jones index higher, rising 4.0%. Shares of Caterpillar (+3.3%) and Intel (+2.7%) also led gains. JB Hunt Transport Services was the best-performing stock in the S&P 500, up by 5.9%. The Dow Jones closed up by almost 244 points or 0.9%. The S&P500 was up by 0.5% and the Nasdaq rose by 48 points or 0.6%. For the week, the Dow Jones added 1.5%, the S&P 500 rose 0.8% and the Nasdaq gained 1.0%.

Shorter-dated US treasuries rose (yields lower) on Friday. But treasury yields were largely unmoved by stronger-than expected producer price data as market expectations of an interest rate cut this month held firm. US 2-year yields fell by 1 point to near 1.85% and US 10-year yields were flat near 2.12%.

Major currencies were stronger against the US dollar in US and European trade compared with the end of Asian trade. The Euro rose from lows near US$1.1238 to highs near US$1.1273 and was near US$1.1269 in late US trade. The Aussie dollar rose from lows near US69.82 cents to highs near US70.24 cents and was near US70.14 cents in late US trade. The Japanese yen strengthened from near 108.46 yen per US dollar to JPY107.80 and was near JPY107.87 in late US trade.

Bonjour Europe

European share markets were little changed on Friday. The pan European STOXX600 ended trading flat but was down 0.8% over the week. The German Dax and the UK FTSE indexes were both down by just 0.1%. Daimler shares fell by 0.7% after the world's largest truck maker warned investors it expected to report a second quarter loss. In London trade, shares of Rio Tinto fell by 0.3%, but BHP shares lifted by 0.4%.

Hello World!

In China data, exports fell by 1.3%/yr. (consensus: -1.4%) and imports were down by 7.3%/yr. (consensus: -4.6%) in June. Chinese banks offered 1.66 trillion yuan (consensus: 1.7 trillion yuan) in net new loans in June, up from 1.18 trillion yuan in May.

Major currencies were stronger against the US dollar in US and European trade compared with the end of Asian trade. The Euro rose from lows near US$1.1238 to highs near US$1.1273 and was near US$1.1269 in late US trade. The Aussie dollar rose from lows near US69.82 cents to highs near US70.24 cents and was near US70.14 cents in late US trade. The Japanese yen strengthened from near 108.46 yen per US dollar to JPY107.80 and was near JPY107.87 in late US trade.

Global oil prices were little changed on Friday. Worries about a global crude surplus offset concerns over supply cuts in the US Gulf of Mexico due to Tropical Storm Barry. Global crude oil supply exceeded demand by 900,000 barrels a day in the first six months of 2019 according to the IEA. The Brent crude price rose by US20 cents or 0.3% to US$66.72 a barrel. The US Nymex price rose by US1 cent or 0.02% to US$60.21 a barrel. Over the week, Brent rose by 3.9% and the Nymex lifted 4.7%.

Base metal prices were mixed on the London Metal Exchange (LME) on Friday. Nickel (+2.6%) rose on concerns that Indonesia will resume an export ban on ore in 2022. Tin fell by 0.7%, while copper and aluminium were both down by 0.3%.

The gold futures price rose by US$5.50 an ounce or 0.4% to US$1,412.20 an ounce to be up 0.9% over the week. The spot gold price was trading near US$1,415 an ounce in late US trade. Iron ore fell by US70 cents or 0.6% to US$118.55 a tonne but was still up by 3.8% over the week.

G’day Australia

In China, June quarter economic (GDP) growth and June monthly activity data are all issued. In the US, the New York Empire State Manufacturing Index is scheduled.