Howd’y, America!

In US economic data, export prices were flat in September (forecast +0.2%) with import prices up 0.5% (forecast +0.2%). Consumer confidence fell from 100.1 to 99 in October (forecast 100.4). The 5-year outlook for inflation eased from 2.5% to 2.3% — tying with the lowest observation on record.

US share markets rose on Friday by over 1%. Technology stocks led the gains with both Apple and Microsoft lifting by over 3.5%. In response to earnings results JPMorgan Chase fell by 1.1%, Citigroup rose by 2.1% and Wells Fargo rose by 1.3%.  The Dow Jones rose by 287 points or 1.2% after holding in a 467-point range. The S&P500 index lifted by 1.4% and the Nasdaq index gained 168 points or 2.3%. Over the week, the Dow lost 4.2% with the S&P 500 down 4.1% and the Nasdaq lost 3.7%.

US long-term treasuries fell modestly on Friday (yields higher). Equities recovered and investors trimmed some exposure to safe-haven assets like government bonds and gold. US 2-year yields were steady near 2.86% and US 10-year yields rose by 1 point to 3.167%. Over the week US 2-year yields fell by 2.5 points and US 10-year yields fell by 4 points.

Major currencies were mixed against the US dollar in US and European trade compared with the Asian close. The Euro fell from highs near US$1.1610 to lows around US$1.1535 and was near US$1.1560 in late US trade. The Aussie dollar fell from highs near US71.35 cents to lows near US71.00 cents and was near US71.20 cents in late US trade. The Japanese yen rose from 112.48 yen per US dollar to JPY111.88 and was near JPY112.20 in late US trade.  

Bonjour, Europe

European share markets ended modestly lower on Friday. But autos and technology both rose by 0.5% The pan-European STOXX600 index fell by 0.2% on Friday and lost 4.8% over the week. The German Dax index lost 0.1% and the UK FTSE index fell by 0.2%.  

Zao shang hao, Asia

On Sunday, China's central bank governor Yi Gang said he still sees plenty of room for adjustment in interest rates and the reserve requirement ratio.

Top of the morning, London

In London trade, shares of Rio Tinto rose by 1.3% and BHP lifted 0.8%.

Base metal prices were generally firmer on the London Metals Exchange on Friday. Lead rose by 2.7% and zinc rose by 1.6%. But tin lost 1.6% and nickel lost 0.2%. Over the week all metals rose except aluminium (-4.4%). Lead rose by 4.6%.

G’day Australia –  on fuel and the glittery ‘stuff’

Global oil prices rose modestly on Friday. The International Energy Agency said that the market looked "adequately supplied for now" and trimmed forecasts for global oil demand. Brent crude rose by US17 cents or 0.2% to US$80.43 a barrel and the US Nymex price rose by US37 cents or 0.5% to US$71.34 a barrel. Over the week Brent fell by US$2.29 or 2.8% and Nymex fell by US$1.91 or 2.6%. 

The gold futures price fell by US$5.60 an ounce or 0.5% to $1,222.00 an ounce. The spot gold price was trading near US$1,217 an ounce in late US trade. Over the week gold rose by US$16.40 or 1.4%. Iron ore rose by US45 cents or 0.6% to US$71.50 a tonne. 

Over the week iron ore rose by US$1.90 or 2.7%.