In Asian Equity Markets stocks were mixed on Monday after China’s central bank trimmed key lending rates as a raft of economic data missed forecasts and underlined the need for more stimulus to support the world’s second largest economy. MSCI’s broadest index of Asia-Pacific shares outside Japan was flat, having bounced 0.9 percent last week. Japan’s Nikkei rose 1.1 percent as data showed the economy grew an annualized 2.2 percent in the second quarter, just a touch under estimates. The cut in rates helped cushion the blow a little and left Chinese blue chips steady.
In Currency Markets the Australian and New Zealand dollars retreated from near two-month highs on Monday after a new batch of disappointing data from China, a key trading partner, while the yuan weakened following a surprise rate cut. The U.S. dollar index edged 0.04 percent higher to 105.74, consolidating near the middle of its range this month. Sterling fell 0.14 percent to $1.21185, while the euro eased 0.1 percent to $1.02475. New Zealand’s kiwi lost 0.6 percent to $0.64165, while the Aussie slid 0.58 percent to $0.70805.
In US Equity Markets stocks closed higher on Friday as signs that inflation may have peaked in July increased investor confidence that a bull market could be under way and spurred the S&P 500 and the Nasdaq to post their fourth straight week of gains. The Dow rose 1.27 percent, to 33,761.05, while the S&P 500 gained 1.73 percent, to 4,280.15 and the Nasdaq Composite added 2.09 percent, to 13,047.19. Banks rose 1.4 percent to extend their rally for a sixth straight week. GlobalFoundries Inc jumped 11.9 percent on being added to BofA Global Research’s “U.S. 1 list.”
In Commodities Markets oil prices plunged around 2 percent on Friday, on expectations that supply disruptions in the U.S. Gulf of Mexico would be short-term, while recession fears clouded the demand outlook. Brent crude futures fell 1.5 percent, to settle at $98.15 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 2.4 percent, to settle at $92.09 a barrel. Spot gold rose 0.5 percent to $1,798.86 per ounce. Spot silver rose around 2 percent to $20.70 per ounce, platinum was up 0.3 percent at $958.57, while palladium fell 1.8 percent to $2,235.09.
In European Equity Markets stocks rose on Friday after drugmakers rebounded following a decline in the previous session, and Flutter fanned a rally in the travel and leisure sector after an upbeat earnings forecast. The European healthcare sector gained 0.2 percent, with the STOXX 600 index also rising 0.2 percent. Roche rose 1.6 percent after the drugmaker received approval from the U.S. Food and Drugs Administration for its Xofluza drug to treat influenza in children aged five years and older. London stocks gained 0.5 percent after data showed Britain’s economy contracted by less than feared in the second quarter.
In Bond Markets longer-dated U.S. Treasury yields fell on Friday after a volatile week as investors evaluated whether an apparent slowdown in inflation could reduce the speed of Federal Reserve interest rate hikes. Benchmark 10-year note yields fell four basis points to 2.849 percent, after reaching 2.902 percent on Thursday, the highest since July 22. Two-year note yields gained two basis points to 3.251 percent. The closely watched yield curve between two- and 10-year notes was at minus 41 basis points, after reaching minus 56 basis points on Wednesday, the deepest inversion since 2000.