To the scoreboard:
- Dow: 25,451.06 -76.01 (-0.30%)
- S&P 500: 2,818.82 -18.62 (-0.66%)
- AUD/USD: 0.7401 +0.0023 (+0.31%)
- ASX200 SPI futures (September contracts): 6,225 (-26)
1. US GDP data on Friday night showed annual growth of 4.1% in the June quarter. President Trump was optimistic about further growth, but many economists said the US economy was unlikely to maintain the same rate of growth in the second half of the year.
2. While the Q2 print was strong, most analysts were expecting annual growth of at least 4% and currency markets were little-changed in the wake of the release. Most major pairs remain stuck within their recent trading ranges and the US dollar index drifted lower to end the week.
3. And with earnings season in full swing, US stocks were weighed down by further falls in the tech sector. One day after Facebook’s record selloff, shares in Twitter got hammered by more than 20% after missing expectations for monthly user growth.
4. US bond yields were little-changed in the wake of the GDP data, with benchmark 10-years holding at around 2.96%. It was relatively quiet on commodity markets, with oil prices slightly lower while higher Chinese steel prices provided the catalyst for iron ore to continue its recent run higher.
5. Bitcoin steadied over the weekend, after selling off at the end of last week when US regulators rejected another application for a bitcoin exchange traded fund (ETF). Prices are back above $US8,200 this morning, after dipping as low as $US7,800 on Friday.
6. And this from Business Insider UK is worth a read — a super-detailed synopsis about long-held rumours of a huge speculative bet against the British pound on June 23, 2016 — the night of the Brexit vote.
Looking to the week ahead, it’s a busy schedule of central bank meetings, with all eyes on the Bank of Japan on Wednesday. BI’s full economic data calendar is here.
Have a great week.
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