How’dy USA

In US economic data, new home sales fell by 12.8% in July to a 635,000-annual rate (forecast 649,000). US Federal Reserve chief Jerome Powell said that the US economy is in a "favourable place" and the Fed will "act as appropriate to sustain the expansion". Powell also said that the US faces "significant risks".

US share markets slumped on news of fresh Chinese tariffs on US goods. The Dow Jones fell by 623 points or 2.4% while the S&P500 fell by 2.6% and the Nasdaq lost almost 240 points or 3.0%. Over the week the Dow lost 1% with the S&P 500 down 1.4% and Nasdaq lost 1.8%.

US treasuries were firmer on Friday (yields lower) as traders bought safe-haven assets on news of escalation of the China-US trade war. US 2-year yields fell by 8 points to near 1.529% and US 10-year yields fell by 8 points to near 1.527%. Over the week US 2- year yields fell 1.3 points and 10-year yields rose by 5 points.

Bonjour Europe

European share markets fell on Friday in response to the latest news on the China-US trade war. Autos fell 2.1% with mining and technology down 1.1%. The pan-European STOXX600 index fell by 0.8%, the German Dax lost 1.2% and the UK FTSE fell by 0.5%. In London trade, shares of Rio Tinto fell by 0.5% and BHP lost 1.2%.

Hello World!

Global oil prices fell by up to 2.1% on Friday after the US-China trade war escalated. But supporting prices was news that the number of oil rigs in operation in the US was at the lowest since January 2018. Brent crude price fell by US58 cents or 1.0% to US$59.34 a barrel. And the US Nymex price fell by US$1.18 or 2.1% to US$54.17 a barrel. Over the week Brent rose by 1.2% but Nymex fell by 1.3%.

Base metal prices were mixed on the London Metal Exchange on Friday. Tin fell 1.8% and copper fell 0.8% but other metals rose by up to 0.6% with lead up the most. Over the week tin fell 4.2% with nickel down 3.1%. But zinc rose 0.2% and lead rose 1.5%..

The gold futures price rose by US$29.10 an ounce or 1.9% to US$1,537.60 an ounce. The spot gold price was trading near US$1,526 an ounce in late US trade. Over the week gold rose by US$14.00 an ounce or 0.9%. Iron ore rose by US$3.95 or 4.6% to US$88.95 a tonne. Over the week iron ore fell US$3.85 or 4.1%.

G’day Australia

In Australia, no major economic data is released. In the US, data on durable goods orders and is issued with the Chicago Federal Reserve National Activity index. There is a Bank Holiday in the UK.