In the US, personal income rose by 0.2% in December (survey: +0.2%) and spending fell 0.2% (survey: -0.1%). The core personal consumption deflator (excludes energy & food) rose 0.3% (survey: +0.3%) to be up 4.4% on the year (survey: 4.4%). Pending home sales rose by 2.5% in December (survey +0.9%). Consumer sentiment rose from 59.7 to 62.7 in January (survey: 64.6). The 12-month consumer inflation expectations reading fell to a 21-month low of 3.9% in January.
European share markets rose on Friday. Investors were encouraged by US inflation data, but weak earnings figures
weighed on sentiment. Shares in retailer H&M fell 4% on a bigger-than-expected fall in quarterly profit. Shares in Remy Cointreau fell by 3.7% on lower third-quarter sales. But the energy sector rose 1% and banks rose 0.5%. The continent-wide FTSEurofirst 300 index lifted by 0.2%. The UK FTSE 100 index rose by 0.1%.
US share markets were firmer on Friday. Key inflation data met expectations. Across sectors, consumer discretionary rose 2.5% with energy down 1.8%. At the close, the Dow Jones index was higher by 29 points or 0.1% after earlier being up 215 points. The S&P 500 index rose by 0.3%. And the Nasdaq index rose 109 points or 1.0%. Over the week, the Dow rose 1.8%; S&P 500 rose 2.5%; and the Nasdaq rose 4.5%.
US government bonds were weaker on Friday (yields higher). US 10-year treasury yields rose 2 points to 3.51%. US 2-year yields rose by 2 points to 4.20%. Over the week US 10-year yields rose by 3 points with US 2-year yields up by 2 points.
Major currencies were mixed against the US dollar in European and US trade. The Euro fell from near US$1.0895 to
US$$1.0835 and was near US$1.0865 in late US trade. The Aussie dollar held between US70.90 cents and US71.25 cents and was around US71.10 cents in late US trade. And the Japanese yen held between 129.60 yen per US dollar and JPY130.25 and was near JPY129.85 in late US trade.
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Global oil prices fell by as much as 1.6% on Friday. Traders cited higher Russian supplies and end-week profit-taking for the fall in crude prices. OPEC+ delegates meet next week while central bank decisions are expected in the US and Europe. The Brent crude oil price fell by US81 cents or 0.9% to US$86.66 a barrel. And the US Nymex crude oil price fell by US$1.33 or 1.6% to US$79.68 a barrel. On the week, Brent fell 1.1%; Nymex fell 2%.
Base metal price futures prices fell by as much as 4.5% on Friday. The US aluminium futures price fell by 0.7%. And the US copper futures price fell by 1.1%. Reuters reported that lead rose 4.6% on the week and note that copper inventories stand at 10- month lows.
The gold futures price fell by US60 cents to US$1,929.40 an ounce. Spot gold was trading near US$1,927 an ounce in late US trade. Over the week gold rose $1.20 or 0.1%. Iron ore futures rose by US21 cents a tonne or 0.2% to US$122.70 a tonne. Over the week iron ore rose by US54 cents or 0.4%.
In Australia, no major data is scheduled on Monday.
In the US the Dallas Federal Reserve manufacturing index is released on Monday.
Originally published by CommSec