Howdy, USA

Data showed the economy growing at a 3.5% annual pace in the September quarter (forecast 3.3%). Core prices grew at a 1.6% annual pace (forecast 1.8%). The consumer sentiment index fell from 100.1 to 98.6 (forecast 99) in October.   

US share markets fell on Friday, dragged lower by disappointment on earnings from Amazon (down 7.8%) and Alphabet (Google) (down 1.8%). The Vix or so-called 'fear gauge' fell by 0.2%. The Dow Jones ended lower by 296 points or 1.2% after tracking a 471 point range. The S&P500 index fell by 1.7% and the Nasdaq index lost 151 points or 2.1%. Over the week the Dow fell 3%, the S&P 500 fell by 4% and the Nasdaq fell by 3.8%.

US treasuries rose on Friday (yields lower) as investors again embraced safe-haven assets like government bonds in favour of equities and commodities. Lower oil prices reduced inflation concerns while data showed that US core inflation also eased in the September quarter. US 2-year yields fell by 4 points to 2.81% and US 10-year yields fell by 4 points to 3.08%. Over the week, US 2-year yields fell by 10 points and US 10-year yields fell by 12 points.

Major currencies were mixed against the US dollar in US and European trade compared with the Asian close. The Euro rose from lows near US$1.1335 to highs around US$1.1420 and was near US$1.1400 in late US trade. The Aussie dollar rose from lows near US70.20 cents to highs near US71.00 cents and was near US70.90 cents in late US trade. And the Japanese yen eased from 111.36 yen per US dollar to JPY112.10 and was near JPY111.90 in late US trade.  

Bonjour, Europe

European share markets fell on Friday. Disappointing company results weighed on share indexes. The auto and parts sector fell 1%. Results from banks were more mixed. The pan-European STOXX600 index fell by 0.8%. The German Dax and the UK FTSE index also lost 0.8%. In London trade, shares of Rio Tinto rose by 0.2% and BHP fell by less than 0.1%.

Top of the morning, London

Base metal prices were mixed on the London Metals Exchange on Friday. Nickel fell by 2% with other metals down by up to 0.7%. But aluminium rose by 0.4% and zinc rose by 0.5%. Over the week nickel fell by 4.3% and aluminium and copper were lower while metals rose by up to 1%.

Hello, world!

Global oil prices rose again on Friday. Investors focussed on the upcoming sanctions to be applied by the US on Iran, cutting global oil supplies. According to Reuters, two sources said on Friday Iraq will stop trucking crude oil from its northern Kirkuk oil field to Iran in November to comply with US sanctions. Brent crude rose by US73 cents or 0.9% to US$77.62 a barrel, and the US Nymex price rose by US26 cents or 0.4% to US$67.59 a barrel. Over the week Brent fell by 2.7% and Nymex fell by 2.2%.

The gold futures price rose by US$3.40 an ounce or 0.3% to $1,235.80 an ounce. The spot gold price was trading near US$1,233 an ounce in late US trade. Over the week gold rose by US$6.70 or 0.5%. Iron ore rose by US50 cents or 0.7% to US$77.00 a tonne. Over the week iron ore rose by US$3.55 or 4.8%.

G’day, Australia!

In Australia, the State of the States report is released. In the US, personal income and spending figures are issued.

Have a great day!