United States
US markets ended Friday on a strong note, with major indexes advancing. The Nasdaq Composite closed at a record high, rising 207 points, or 0.98%, to finish at 21,450. The rally was once again driven by Apple, which continues to recover from its recent tariff-related underperformance. The rebound started earlier in the week after the company announced further investment in US manufacturing—news welcomed by the US administration.
The Dow Jones Industrial Average also gained 207 points, or 0.47%, to close at 44,175, while the S&P 500 advanced 0.78% to 6,389.45 in a broad-based rally, with eight sectors finishing higher. Trading volume, however, was below average. For the week, the S&P 500 rose 2.4%, recovering from last week’s sharp sell-off triggered by weaker-than-expected employment data.
Technology stocks led the gains, with Apple climbing 4.24% to $229.35. Other members of the “Magnificent Seven” also rallied, with Alphabet (Google) up 2.44% and Tesla gaining 2.29%.
In individual stock moves, MP Materials—a rare earths miner—jumped 4.57% after posting a narrower-than-expected second-quarter loss and reporting record production of NdPr oxide, a key material in permanent magnets used in electric vehicles, robotics, and electronics. The company also announced expansion plans and highlighted large contracts signed with the US Department of Defense last month. On the downside, Goodyear slumped 18% after delivering a surprise loss, citing inflation, tariffs, and supply chain pressures as the main drivers.
Looking ahead, investors will turn their attention to more inflation data, with the CPI due on Tuesday. Economists expect the annualised CPI excluding food and energy to come in at 3%. While weak jobs numbers have increased expectations of a September rate cut, a hotter-than-expected CPI could dampen that outlook. Investors will also be looking at further developments in the Russian/Ukraine conflict as US President Trump announced a meeting between himself and Russian President Putin in Alaska on August the 15th. Bond yields moved higher, with the 2-year rising 3 basis points to 3.76% and the 10-year up 4 basis points to 4.28%. The US dollar edged higher on Friday but slipped 0.50% over the week on the Bloomberg US Dollar Index.
Europe
European markets closed out a strong week with modest gains on Friday, as the Euro Stoxx 600 rose 0.19% to finish at 547.08. The weekly gain of 2.2% marked the index’s best performance in three months, with materials and financials leading the advance as nine of the eleven sectors finished higher.
In the UK, trading was more subdued, with the FTSE 100 edging down 0.06% to 9,095.73.
Materials stocks outperformed on the continent, with the sector in the Euro Stoxx 600 gaining 0.96% amid higher copper and iron ore prices. Copper miner Antofagasta rose 2.53%, buoyed by broker upgrades, while Glencore climbed 2.78%, recovering earlier losses from the week.
Banking stocks also saw strong interest, with the sub-index up 1.48% after a run of better-than-expected earnings encouraged investors to increase exposure. Eurozone banking giants Santander (+2.32%) and UniCredit (+2.04%) benefited as investors rotated into domestically focused equities, seeking to shield portfolios from the impact of US trade policies. Conversely, Munich Re slumped 7.2% after issuing a lower revenue outlook, citing reduced renewals and weaker expected receipts due to foreign exchange movements.
Bond yields moved higher as traders scaled back expectations of further rate cuts. The German 10-year Bund yield rose 6 basis points to 2.69%, while the UK 10-year gilt climbed 5 basis points to 4.60%. The euro begins the week mid-range at 1.1641 against the US dollar.
Australia
The Australian equity market slipped on Friday, with the ASX200 losing 24.3 points (-0.28%) to close at 8,807. Mining stocks led gains, while financials and healthcare underperformed. Overall, five sectors advanced and six declined. Despite marginal losses over the past two sessions, the ASX200 ended the week up 1.67%.
The financials sector weakened as investors reduced exposure to banks ahead of the Reserve Bank of Australia’s expected rate cut on Tuesday and Commonwealth Bank’s annual results later in the week. CBA fell 0.85% to $176.61, while NAB dropped by the same percentage to close at $38.49. The biggest fall in the sector came from insurer QBE, which slumped 8.78% to $21.39 after reporting an increase in its non-catastrophic claims ratio. Although headline profit exceeded expectations, it was driven by currency gains and proceeds from a business sale—both non-recurring items. QBE did lift its interim dividend to 31c, up from 24c previously.
Fund manager GQG Partners tumbled 14.6% after revealing $1.4 billion in July outflows, following the loss of an institutional mandate, and warned that negative net flows could persist. In contrast, local fund manager AMP extended its rally from Thursday’s results, gaining another 7.14% to finish at $1.875.
Materials stocks continued their strong run, with the index gaining 5.24% over the past five sessions as higher ore prices and an improved global growth outlook attracted investors back to the sector. BHP rose 0.85% to $40.21, while Fortescue advanced 1.84% to $18.85. Fortescue also announced it had secured a 14.2-billion-yuan (US$2 billion) loan from lenders, including Chinese banks, to fund its decarbonisation initiatives. CEO Andrew Forrest commented, “China and Fortescue are advancing the green technology needed to lead the global green industrial revolution.”
Gold remained well-supported and approached the US$3,400 level, keeping gold miners in demand. Northern Star gained 3.97%, Evolution rose 2.13% to $7.66, and Lynas continued its strong rally, adding 3.78% (46c) to $12.62, buoyed by broker upgrades.
Economists expect the RBA to cut the cash rate to 3.60% on Tuesday. At its previous meeting, the central bank surprised markets by holding rates steady, but with softer inflation data since then, investors are hopeful there will be no repeat. Bond yields were steady, with the 2-year yield at 3.34% and the 10-year at 4.24%.
In Friday evening trade, the ASX200 futures slipped 5 points (-0.06%). The Australian dollar begins the week at 0.6522 against the US dollar.
Commodities
Gold was caught up in tariff-related headlines on Friday after US customs officials ruled that imports of 1kg gold bars would be subject to the broader import tariff rate for certain countries. The news initially drove a spike in US gold futures before a White House official said a clarifying order on gold bars would be issued. Spot gold ended the session marginally higher at US$3,397.
Oil prices steadied, with West Texas Intermediate unchanged at US$63.88 and Brent crude adding 16c (+0.24%) to close at US$66.59. Prices had initially fallen following the announcement of a presidential meeting between Russia and the US, but losses were erased by the close. The quieter session followed a volatile week in which supply concerns from OPEC+ and Russia saw oil drop 5%.
Iron ore rose in Friday’s New York trade, ending at US$103.00—a 0.98% gain—after trading sideways in Asia. Over the weekend, Chinese data showed producer prices fell more than expected, reinforcing deflation concerns. In the past, such concerns linked to overcapacity have prompted authorities to restrict production, which could influence iron ore prices this week.
Copper advanced after Chilean authorities reported that last week’s collapse at Codelco’s El Teniente mine caused more extensive damage than initially thought. The disruption may affect the company’s plans to boost supply from existing facilities. On the London Metal Exchange, copper climbed US$78 (+0.80%) to US$9,762 a tonne.
Economic Calendar
No Major Data Releases.
This article was written by Paul Darwell, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
