How’dy USA

US share markets fell on Friday. US President Trump said his team was "making a lot of progress" with Chinese trade talks, but he wasn't interested in "a partial deal". Investors became pessimistic about the potential for a trade war resolution after a Chinese delegation cancelled planned visits to US farms. The Dow Jones fell by almost 160 points or 0.6% after trading in an 168 point range. The S&P500 index fell by 0.5% and the Nasdaq lost 65 points or 0.8%. Over the week the Dow lost 1.05%, the S&P 500 lost 0.5% and the Nasdaq fell by 0.7%.

US treasuries were stronger on Friday (yields lower) on investor risk aversion after Chinese officials cut their US trip short. US 2- year yields fell by 5 points to 1.69% and US 10-year yields fell by 5 points to 1.72 per cent. Over the week, US 2-year yields fell by 11 points and US 10-year yields fell by 18 points.

Bonjour Europe

European share markets posted moderate gains on Friday. Oil & gas shares rose by 1.2% with real estate shares up by 0.5%. The pan-European STOXX600 index rose by 0.3% - the fifth straight weekly gain. The German Dax lifted by 0.1% but the UK FTSE lost 0.2%. In London trade, shares of Rio Tinto fell by 0.4% and BHP eased by 0.2%.

Hello World!

Major currencies held in tight ranges against the US dollar in US and European trade compared with the end of Asian trade. The Euro fell from near US$1.1065 to US$1.0995 and was around US$1.1015 in late US trade. The Aussie dollar fell from near US68.10 cents to US67.60c and was near US67.75c in late US trade. The Japanese yen lifted from 108 yen per US dollar to JPY107.50 and was near JPY107.70 in late US trade.

Global oil prices fell slightly on Friday. Traders continued to watch developments in US-China trade talks. Supporting prices was data showing the number of oil rigs in operation in the US fell by 14 to a 2-year low of 719. Reuters reported: "A Saudi-led coalition on Friday launched a military operation north of Yemen's port city of Hodeidah while the United States worked with Middle East and European nations to build a coalition to deter Iranian threats." The Brent crude price fell by US12 cents or 0.2% to US$64.28 a barrel. And the US Nymex price fell by US4 cents or 0.1% to US$58.09 a barrel. Over the week Brent rose by 6.7% and Nymex rose by 5.9%.

Base metal prices were mixed on the London Metal Exchange on Friday. Zinc and aluminium lost 0.1% and copper rose 0.1%. But lead, nickel and tin rose 1.2-1.5%. Over the week zinc and copper both lost 3%. But tin gained 1.6%.

The gold futures price rose by US$8.90 or 0.6% to US$1,515.10 an ounce. The spot gold price was trading near US$1,517 an ounce in late US trade. Over the week gold rose by US$15.60 an ounce or 1.0%. Iron ore fell by US40 cents or 0.4% to US$91.60 a tonne. Over the week iron ore fell by US$7.50 a tonne or 7.6%.

G’day Australia

In Australia, the CBA 'flash' purchasing managers indexes (PMI) are issued. In the US, the Chicago Federal Reserve National Activity index is released with the 'flash' Markit PMI results. US Federal Reserve officials Williams, Daly and Bullard all speak.