How’dy USA

In US economic data, personal income rose 0.4% as expected in August. Spending rose 0.1% (forecast +0.3%). The core personal consumption deflator (inflation measure) rose 0.1% to be up 1.8% over the year as expected. Durable goods orders rose 0.2% in August (forecast -1.0%). Consumer sentiment rose from 89.8 to 93.2 in September (forecast 92).

US share markets fell on Friday on reports that the White House was considering the delisting of Chinese companies from US stock exchanges. High level US-China trade talks will be held October 10- 11. Economic data was mixed. The Dow Jones fell by almost 71 points or 0.3%. The S&P500 index fell by 0.5% and the Nasdaq lost 91 points or 1.1%. Over the week the Dow lost 0.4%, the S&P 500 lost 1.0% and the Nasdaq fell by 2.2%.

US treasuries were stronger on Friday (yields lower). Investors mulled the latest news in the US-China trade war as well as mixed economic data. US 2-year yields fell by 3 points to 1.62% and US 10-year yields fell by 1 point to 1.67 per cent. Over the week, US 2- year yields fell by 9 points and US 10-year yields fell by 8 points.

Bonjour Europe

European share markets posted moderate gains on Friday, supported by mining stocks. Defensive sectors eased. The pan European STOXX600 index rose by 0.5% but fell over the week for the first time in six weeks. The German Dax lifted by 0.8% and the UK FTSE gained 1.0%. In London trade, shares of Rio Tinto rose by 2.0% and BHP gained 1.2%.

Hello World!

Major currencies were mixed against the US dollar in US and European trade compared with the end of Asian trade. The Euro rose from near US$1.0905 to US$1.0960 and was around US$1.0940 in late US trade. The Aussie dollar rose from near US67.45 cents to US67.80c and was near US67.65c in late US trade. The Aussie is near US67.55c this morning. The Japanese yen eased from 107.65 yen per US dollar to JPY108.17 and was near JPY107.92 in late US trade.

Global oil prices fell by around 1% on Friday on reports of a faster-than-expected recovery in Saudi production. The Brent crude price fell by US83 cents or 1.3% to US$61.91 a barrel. And the US Nymex price fell by US50 cents or 0.9% to US$58.09 a barrel. Over the week Brent fell by 3.7% and Nymex fell by 3.8%.

Base metal prices were mixed on the London Metal Exchange on Friday. Lead and tin fell by up to 1.3%. But other metals rose by up to 0.8% with copper up the most. Over the week metals fell by up to 3.7% with tin and aluminium down the most. But zinc rose 1.6%.

The gold futures price fell by US$8.80 or 0.6% to US$1,506.40 an ounce. The spot gold price was trading near US$1,496 an ounce in late US trade. Over the week gold fell by US$8.70 an ounce or 0.6%. Iron ore rose by US30 cents or 0.3% to US$91.50 a tonne. Over the week iron ore fell by US10 cents.

G’day Australia

In Australia, private sector credit data is released with the monthly inflation gauge. In China the official purchasing manager indexes are released. In the US, the Chicago purchasing managers index is released with the Dallas Federal Reserve manufacturing index.