How’dy USA

In US economic data, wholesale inventories rose by 0.4% in August (survey: +0.5%).

US share markets rose on Friday on continued hopes for a new fiscal stimulus package. Advanced Micro Devices said it was in talks to buy chipmaker Xilinx in a deal valued at more than $30 billion. The Dow Jones index ended higher by 161 points or 0.6%. The S&P500 index lifted 0.9% and the Nasdaq index gained 159 points or 1.4%. Over the week the Dow rose 3.3%; S&P 500 rose 3.8%; and Nasdaq rose 4.6%.

US treasury bond prices fell on Friday (yields higher). US 2-year yields were up 1 point to near 0.157%. US 10-year yields rose 1 point to near 0.779%. Over the week US 2-year bond yields rose by 2 points and 10-year yields rose by 8 points.

Bonjour Europe

European share markets rose to fresh three-week highs on Friday. The pan-European STOXX 600 index rose for the sixth time in seven days, up by 0.6% on the day and up 2.1% over the week. Shares in jewellery maker Pandora rose 17.2% after lifting profit guidance on the back of stronger sales. Travel & leisure and oil & gas sectors led gains. The German Dax index rose by 0.1%. The UK FTSE index rose by 0.7%. In London trade, shares of Rio Tinto rose by 1.3% while BHP shares rose by 1.2%.

Hello World!

Major currencies were firmer against the US dollar in European and US trade. The Euro rose from near US$1.1765 to highs near US$1.1830 and was near US$1.1825 at the US close. The Aussie dollar rose from lows near US71.70 cents to highs near US72.40 cents and was near the highs at the US close. And the Japanese yen rose from 105.98 yen per US dollar to JPY105.56 and was near JPY105.59 at the US close. This morning the Aussie has dropped to US72.05 cents; the Euro is lower near US$1.1800 and Japanese yen weaker at JPY105.86.

Global oil prices were weaker by 1.0-1.5% on Friday on news that the Norwegian oil worker strike had ended. But prices were supported by news that Hurricane Delta had shut in most of the oil production in the Gulf of Mexico. Traders continued to watch progress on a fiscal stimulus package in the US. Brent crude fell by US49 cents or 1.1% to US$42.85 a barrel. And the US Nymex fell by US59 cents or 1.4% to US$40.60 a barrel. Over the week Brent rose US$3.58 or 9.1% and Nymex rose US$3.55 or 9.6%.

Base metal prices rose on Friday by up to 3.8% on the London Metal Exchange with nickel up the most while tin was up just 0.7%. Over the week nickel rose 5.6% while smallest gains were made by tin and lead (both up 2.8%)

The gold futures price rose by US$31.10 an ounce or 1.6% to US$1,926.20 an ounce. Spot gold was trading near US$1,929 an ounce at the US close. Over the week gold rose by US$18.60 or 1%. Iron ore rose by US$2.70 or 2.2% to US$125.85 a tonne. Over the week iron ore rose by US$2.70 or 2.2%.

G’day Australia

In Australia, no major economic data is scheduled. In China, data on money supply, lending and new vehicle sales are tentatively scheduled. In the US, Columbus Day is observed but share markets are open while bond markets are closed.