In US economic data, personal income rose by 0.5% in May (survey: +0.5%) with spending up 0.2% (survey: +0.4%). The key inflation measure – the core PCE deflator – lifted by 0.3% in May to be up 4.7% on the year (survey: +4.8%). Initial jobless claims fell by 2,000 to 231,000 last week (survey: 230,000). The Chicago PMI fell from 60.3 to 56 in June (survey: 58).

European sharemarkets fell on Thursday. The pan-European STOXX 600 index shed 1.5%, posting June quarter losses of 10.7%, its biggest 3-month decline since early 2020. Year-to-date the index is down 16.5%. On Thursday, the German Dax index lost 1.7% and the UK FTSE index slipped 2.0%. In London trade, shares of Rio Tinto and BHP both dipped by 3.6%.

US sharemarkets tumbled on Thursday after data showing a slowdown in consumer spending fuelled concerns about a US recession. Shares of Walgreens Boots Alliance shed 7.3% as its quarterly profit plunged. The Dow Jones index fell by 254 points or 0.8%. And the S&P 500 index lost 0.9% with the Nasdaq index down by 149 points or 1.3%. In the June quarter, the Dow fell 11.3% and the S&P 500 lost 16.4% – their worst quarters since the March quarter of 2020. The Nasdaq slid 22.4%, its worst quarterly stretch since 2008. Year-to-date the Dow shed 15.3%, its worst first half year since 1962. The S&P 500 dipped 20.6%, its worst first half since 1970 and the Nasdaq plunged 29.5%, its worst ever first half performance.

US treasuries rose on Thursday (yields lower) after key US inflation data came in slightly lower-than-expected. US 10-year yields fell by around 8 points to near 3.01% and US 2-year yields fell by around 10 points to near 2.96%.

Major currencies were stronger against the US dollar in European and US trade. The Euro rose from lows near US$1.0380 to highs near US$1.0486 and was near US$1.0480 at the US close. The Aussie dollar lifted from lows near US68.67 cents to highs near US69.18 cents and was near US69.00 cents at the US close. The
Japanese yen firmed from 136.43 yen per US dollar to JPY135.55 and was near JPY135.75 at the US close.

Global oil prices fell on Thursday. OPEC+ confirmed it would only increase output in August as much as previously announced (by 648,000 barrels per day) despite tight global supplies, but left traders
wondering about future output. The Brent crude price lost US$1.45 or 1.2% to US$114.81 a barrel. And the US Nymex crude price tumbled US$4.02 or 3.7% to US$105.76 a barrel.

Base metal prices dipped on Thursday. Zinc fell by 6.2% with nickel 4.7% lower. Copper lost 1.7% to log its biggest quarterly slump since 2011. Metals fell between 20% and 40% in the June quarter.

The gold futures price fell by US$10.20 or 0.6% to US$1,807.30 an ounce. Spot gold was trading near US$1,807 an ounce at the US close. The iron ore futures price fell by US11 cents or 0.1% to
US$130 a tonne.

Ahead: In Australia, home prices and manufacturing surveys are issued. The Caixin China factory index is due. US construction spending data is released with the ISM manufacturing index.

Originally published by CommSec