How’dy USA

In US data, producer prices rose by 0.2% as expected in July. Excluding food and energy, producer prices fell by 0.1% in the month (forecast +0.2%). US share markets fell on Friday. There was uncertainty about the status of official purchases from Chinese telco Huawei. Media reports indicated that while the US Government had blocked dealings with Huawei, the Commerce Department process for special licenses was still going forward. The Dow Jones lost almost 91 points or 0.3% with the S&P500 down 0.7%, while the Nasdaq fell by 80 points or 1.0%. Over the week the Dow lost 0.7%, the S&P 500 index fell 0.5% and the Nasdaq fell by 0.6%.

US treasuries fell on Friday (yields higher). There was profit taking at the end of the week. Investors also mulled negative economic news in the UK, political uncertainty in Italy and confusion about the status of US-China trade negotiations. US 2-year yields rose by 3 points to near 1.65% and US 10-year yields rose by 3 points to near 1.745%. Over the week US 2-year yields fell by 7 points and US 10-year yields fell by 10 points.

US share markets fell on Friday. There was uncertainty about the status of official purchases from Chinese telco Huawei. Media reports indicated that while the US Government had blocked dealings with Huawei, the Commerce Department process for special licenses was still going forward. The Dow Jones lost almost 91 points or 0.3% with the S&P500 down 0.7%, while the Nasdaq fell by 80 points or 1.0%. Over the week the Dow lost 0.7%, the S&P 500 index fell 0.5% and the Nasdaq fell by 0.6%.

Bonjour Europe

European share markets fell on Friday. Political turmoil in Italy dragged the country's share market lower by 2.5%. A surprise contraction of the UK economy in the June quarter weighed on investor sentiment. Uncertainty about the outlook for US-China trade negotiations also reduced investor buying. The pan-European STOXX600 index fell by 0.8%, the German Dax fell by 1.3% and the UK FTSE lost 0.4%. In London trade, shares of Rio Tinto fell by 2.5% and BHP lost 1.8%.

Hello World!

Global oil prices rose by 2-4% on Friday. The number of oil rigs in operation in the US fell from 770 to 764 in the past week - the lowest since February 2018. Saudi Arabia reportedly plans to keep oil exports below 7 million barrels per day in August and September. But the International Energy Agency said global oil demand in the year to May grew at the slowest pace since 2008.The Brent crude price rose by US$1.15 or 2.0% to US$58.53 a barrel. And the US Nymex price rose by US$1.96 or 3.7% to US$54.50 a barrel. Over the week Brent fell by 4.8% and Nymex fell by 3.6%.

Base metal prices generally fell on the London Metal Exchange on Friday. Zinc fell by 3.1% and nickel lost 2.1%. But aluminium fell by just 0.4% and tin rose 0.4%. Over the week nickel rose by 7.4% and lead rose 7.0% while zinc lost 5%.

The gold futures price fell by US$1.00 or 0.1% to US$1,508.50 an ounce. The spot gold price was trading near US$1,497 an ounce in late US trade. Over the week gold rose by US$62.90 or 4.4%. Iron ore was unchanged at US$94.80 a tonne. Over the week iron ore fell by US$13.65 or 12.6%.

G’day Australia

In Australia, no major economic data is expected. In China, data on new vehicle sales is expected. In the US, the monthly budget statement is released with consumer inflation expectations.