22 November 2019
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Good morning, Australia

Craig James
17 June 2019

How’dy USA

In US data, retail sales rose by 0.5% in May (forecast +0.6%) with ex-autos sales up 0.5% (forecast +0.3%), production up 0.4% (forecast +0.2%) and consumer sentiment in June was 97.9 (forecast 98.0).

US share markets eased on Friday. Reuters reported that shares of chipmaker, Broadcom, fell 5.6% after it cut its full-year revenue forecast by $2 billion, blaming the US-China trade conflict and export curbs on Huawei. The Dow Jones index closed lower by 17 points or 0.1%. The S&P500 index fell by almost 5 points or 0.2% and the Nasdaq lost 40 points or 0.5%. Over the week the Dow rose by 0.4%, the S&P 500 rose by 0.5% and the Nasdaq gained 0.7%.

US treasuries were mixed on Friday. US economic data generally beat forecasts, but Chinese production data missed market forecasts. US 2-year yields rose by 1 point to 1.84% and US 10-year yields fell by 1 point to 2.08%. Over the week US 2-year yields were flat but US 10-year yields rose by 1 point.

Bonjour Europe

European share markets were generally weaker on Friday. A sales warning by Broadcom weighed on chipmakers. And weaker Chinese production data reduced interest in trade-sensitive stocks. But safe-haven utilities rose by 0.5%. The pan-European STOXX600 index fell by 0.4%. The German Dax lost 0.6% and the UK FTSE fell by 0.3%. In London trade, shares of Rio Tinto fell by 0.7% and BHP lost 1%.

Hello World!

Major currencies were weaker against the US dollar in US and European trade compared with the end of Asian trade. The Euro fell from near US$1.1290 to near US$1.1200 and was around US$1.1205 in late US trade. The Aussie dollar fell from US69.05 cents to US68.60 cents and was near US68.70 cents in late US trade. And the Japanese yen eased from 108.15 yen per US dollar to JPY108.58 and was near JPY108.55 in late US trade.

Global oil prices rose on Friday. Attacks on two oil tankers in the Gulf of Oman have raised fears about some disruption to oil supplies from the Middle East. But the fears were not enough to prevent oil prices ending lower over the week. The Brent crude price rose by US70 cents or 1.1% to US$62.01 a barrel. And the US Nymex rose by US23 cents or 0.4% to US$51.51 a barrel. Over the week Brent fell by 2% and Nymex fell by 2.7%.

Base metal prices fell by up to 1.3% on Friday with aluminium down the most. But nickel went against the trend, up 0.3%. Over the week metals rose by up to 2.2%, led by nickel. But zinc bucked the trend, down 1.9%.

The gold futures price rose by US80 cents an ounce or 0.1% to $1,345.30 an ounce. The spot gold price was trading near US$1,341 an ounce in late US trade. Over the week gold fell by US80 cents or 0.1%. Iron ore fell by US80 cents or 0.7% to US$109.40 a tonne. Over the week iron ore rose by US$11.05 or 11.2%.

G’day Australia

In Australia no major economic data is expected. In the US, the Empire State manufacturing index is released with capital flows data and the NAHB housing market index.

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