US Equities posted modest results on Friday, with the Dow Jones rising to a record high in the final minutes of trading.
United States
The S&P500 edged up 0.12% on Friday taking a weekly gain to 1.54% after inflation earlier in the week was in line with expectations, with stocks posting their longest win streak since February. The Dow Jones rose 0.34% moving above the 40,000 level for the first time, while the Nasdaq Composite was -0.07% lower along with the Russell 2000 -0.03%.
Ahead this week, a speech by Treasury Secretary Janet Yellen on Tuesday is in focus for investors, with several Fed policymakers also speaking on Monday and Tuesday. The latest Fed policy minutes will be in focus overnight on Wednesday followed by the latest PMI reports for May on Thursday. Finally, durable goods orders for April will round off the week on Friday.
Europe
European equities were modestly lower on Friday with the Euro Stoxx 600 -0.13% lower along with the DAX -0.18%, CAC -0.26% and FTSE100 -0.22%. On Friday, ECB member Isabel Schnabel warned investors against expecting back-to-back rate cuts in June and July, noting a cautious approach is needed. Based on interest rate swaps, traders are expecting a second rate cut by October. Ahead this week the latest UK inflation data is in focus on Tuesday followed by PMI reports for May on Wednesday. The final reading of German GDP will be in focus on Thursday, expected to show a 0.2% increase in the first quarter, with the German Ifo business climate report rounding the week off on Friday.
Australia
The ASX is expected to rise this morning with ASX200 futures up 35 points or 0.45% to 7,876. The index retreated -0.85% on Friday amid broad-based selling with 83.5% of stocks lower, with only materials 0.39% finishing higher. Ahead for investors this week, the latest consumer confidence data for May is in focus on Tuesday along with the latest RBA policy minutes. An RBNZ rate decision will be in focus on Wednesday, although no changes are expected. The latest PMI reports and consumer inflation expectations will be released on Thursday to round off the week.
Commodities
Oil prices finished higher on Friday with both WTI and Brent crude up 1.05% and 0.85% respectively. Iron ore futures in Singapore were 0.79% higher on Friday and up a further 0.18% this morning to US$117.60 while copper advanced 3.37% on Friday. Gold climbed 1.61% to US$2,415.22 an oz, while silver jumped 6.48% along with Bitcoin 2.52%.
Economic Calendar
Fed Bostic Speech 22:45
Fed Barr Speech 23:00
Fed Waller Speech 23:00
Fed Jefferson Speech 00:30
This article was written by James Woods, Portfolio Manager, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
