In US economic data, personal income rose 0.6% in June (survey: +0.5%) with spending up 1.1% (survey +0.9%). The core (excludes food and energy) personal consumption deflator (inflation measure) rose 0.6% to be up 4.8% over the year to June (survey +4.7%). The Chicago purchasing managers index fell from 56 to 52.1 in July (survey: 56). The consumer sentiment index rose from 50 to 51.5 in July (survey: 51.1). The employment cost index rose 1.3% in the June quarter (survey: 1.2%).

European sharemarkets rose on Friday in response to strong earnings and better-than-expected June quarter euro zone economic growth. The pan-European STOXX 600 index rose by 1.3%. The German Dax index gained 1.5% and the UK FTSE index rose by 1.1%. In London trade, shares of Rio Tinto rose by 1.8% and BHP shares rose by 1.4%.

US sharemarkets rose on Friday in response to strong earnings results. Shares in Apple rose 3.3% with Amazon up 10.4%, Chevron up 8.9% and Exxon up 4.6%. The Dow Jones index rose by 315.5 points or 1.0%. The S&P 500 index added 1.4% and the Nasdaq index lifted by 228 points or 1.9%. Over the week the Dow rose 3%; the S&P 500 lifted 4.3%; and the Nasdaq gained 4.7%. Over the month the Dow rose 6.7%; the S&P 500 rose 9.1%; and the Nasdaq rose by 12.3%.

US treasuries were mixed on Friday. US 10-year yields fell by around 2 points to near 2.66%. But US 2-year yields rose by 1 point to near 2.89%. Over the week US 10-year yields fell by 10 points and US 2-year yields fell by 8 points.

Major currencies were mixed against the US dollar in European and US trade. The Euro held between lows near US$1.0145 and highs near US$1.0250 and was near US$1.0218 at the US close. The Aussie dollar held between lows near US69.13 cents and highs near US70.30 cents and was near US69.85 cents at the US close. And the Japanese yen held between near 132.52 yen per US dollar and JPY134.55 and was near JPY133.20 at the US close.

 

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Global oil prices rose on Friday. The OPEC+ producer group meets on Wednesday and it is not expected to make a decision to lift supply. The Brent crude price rose by US$2.87 or 2.7% to US$110.01 a barrel. And the US Nymex crude price rose by US$2.20 or 2.3% to US$96.42 a barrel. Over the week Brent rose 6.6% and Nymex rose by 4.1%

Base metal prices rose by between 1.6-7.8% on Friday with nickel up the most. Over the week metal prices rose by up to 6.8% with nickel up the most. But tin was the exception, down by 0.2%.

The gold futures price rose by US$12.60 an ounce or 0.7% to US$1,781.80 an ounce. Spot gold was trading near US$1,765 an ounce at the US close. Over the week gold rose by US$54.40 or 3.1%. The iron ore futures price rose by US$7.93 or 7.4% to US$115.48 a tonne. Over the week iron ore rose by US$11.02 or 10.5%.

Ahead: In Australia, the CoreLogic home price index is released with the ANZ job ads series, monthly inflation gauge and purchasing manager indexes (PMI). In the US, PMI are released with construction spending.

Originally published by CommSec