US stocks closed the week with gains, with the S&P and Nasdaq lower for the week. Next week is expected to be a big week for earnings reports. The Baker Hughes oil rig count increased by 5 to 482.
ECB’s Schnabel mentioned that services inflation is showing the last mile in the inflation fight and is particularly challenging. European shares bounced back, with a mixed performance for the week. The initial Atlanta Fed GDPNow growth tracker came in at 2.8%.
University of Michigan consumer sentiment for July was 66.4, slightly higher than the 66.0 estimate. The US Core PCE YoY for June was 2.6%, exceeding the 2.5% estimate.
As the NA session began, the AUD was the strongest and the JPY was the weakest. The day saw a reversal of trends, with the AUD ending as the strongest and the CHF as the weakest. The USD, which had mixed fortunes throughout the week, ended with similar results today.
Stocks in Europe and the US moved higher, with major European indices posting gains:
– German DAX +0.68%
– France CAC +1.22%
– UK FTSE 100 +1.21%
– Spain’s Ibex +0.18%
– Italy’s FTSE MIB +0.12%
For the trading week, most indices were higher except Italy’s FTSE MIB:
– German DAX +1.38%
– France CAC -0.22%
– UK FTSE 100 +1.59%
– Spain’s Ibex +0.71%
– Italy’s FTSE MIB -1.09%
In the US, the Dow industrial average rose by 1.64%, the S&P index by 1.11%, the NASDAQ index by 1.03%, and the small-cap Russell 2000 by 1.67%. The Dow was up for the 4th consecutive week, while the S&P and Nasdaq were down for the 2nd consecutive week.
Next week will be influenced by earnings reports from companies like Microsoft, Apple, and Amazon. US yields closed near lows across the yield curve, with the 2-year yield at 4.389%, the 5-year yield at 4.0767%, the 10-year yield at 4.195%, and the 30-year yield at 4.456%.
The core PCE data showed a slight increase, with the YoY rising to 2.6%. The Michigan consumer survey data was mixed, with sentiment moving higher, current conditions lower, and expectations higher. Inflation results were in line with expectations.
Looking ahead, the Fed, the Bank of England, and the Bank of Japan will announce interest rate decisions. The US jobs report will be released, along with Australia and EU CPI data. China PMI will also be released. Thank you for your support this week, and have a great weekend.
