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Sydney - Stocks were mixed as investors assessed global earnings and the appetite of US consumers to keep spending. Bonds and gold extended gains.
European shares rose, while Asian stocks retreated from the highest level in almost two years. Worries that Americans continue to hold back from buying goods dragged the S&P 500 Index lower Thursday. Gold extended an advance while Australian government bonds tracked gains in Treasuries. Oil traded near $48 a barrel. The Bloomberg Dollar Spot Index headed for its best week of the year.
Global equities are near a record high amid optimism the economy can weather higher US interest rates. Weak sales at American department stores underscored rising angst that the biggest part of the US economy isn’t picking up pace enough to raise growth rates. US retail sales data due later on Friday will give investors a fresh read on the situation.
Despite a rebound on Friday, mainland Chinese shares capped a fifth week of declines, the worst run this year. The rout has erased more than $560bn from the value of equities, making the Shanghai Composite Index the world’s worst performer since mid-April.
Here are key events investors will be watching:
Chicago Fed President Charles Evans is due to speak in Dublin at a conference that will also host European Central Bank policy maker Philip Lane. To watch live click here.
In addition to retail sales data, the US is scheduled to report on consumer prices on Friday. Chinese President Xi Jinping hosts world leaders including Russian President Vladimir Putin at a summit promoting his $500bn trade-and-infrastructure plan, which is called the Belt and Road Initiative. The summit begins Sunday and will showcase Xi’s plans to remake global trade patterns in China’s favour.
Here are the main moves in markets:
Stocks
The Stoxx Europe 600 rose 0.2% as of 10:27, with AstraZeneca Plc climbing more than 4.5%. The regional index fell 0.5% on Thursday after closing at the highest since August 2015 in the previous session. The MSCI Asia Pacific Index slipped 0.3%, retreating from a 23-month high on Thursday and paring its gain for the week to 1.3%.
Japan’s Topix index fell 0.4% after reaching the highest level since December 2015 in the previous session. The gauge rose 2% for the week. The Shanghai Composite Index rose 0.7%, paring its weekly loss to 0.6%. S&P 500 e-mini contracts were down 0.2% after the underlying gauge fell 0.2% on Thursday.
Currencies
The Bloomberg Dollar Spot Index is up 0.8% for the week, its best showing since mid-December. The yen rose 0.1% to 113.75 per dollar, paring its decline for the week to 0.9%.
The kiwi dollar dropped 0.2%, after tumbling to the lowest in almost a year on Thursday following dovish comments from New Zealand’s central bank. The Aussie was steady at 73.76 US cents, on course for a fourth weekly slide against the greenback. The euro was little changed at $1.0864. The currency is down 1.2% for the week, the worst performance since March.
Bonds
The yield on 10-year Treasury notes was down one basis point at 2.38%, after falling three basis points on Thursday. Yields on 10-year Australian government bonds fell two basis points to 2.64%, down for the third day in a row. Benchmark yields in France and Germany dropped two basis points.
Commodities
Oil rose 0.1% to $47.89. Crude is up for a third day, leaving the worst of last week’s rout behind for now, as US stockpiles fell and two OPEC members said there’s a consensus to extend output cuts. Gold advanced 0.2% to $1 227.89 an ounce after a 0.5% advance on Thursday.
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