Here’s your Friday morning market update with extra French GDP ugliness to come.
– Stocks broke their losing streak overnight as data in the US was Goldilocks-like, starting with strong jobless claims (305,000 with 4-week moving average was the lowest since 2007). Q2 GDP printed at 2.5% – largely as expected – and consumption data (PCE Q2 -0.1%) fell for the first time in four years, suggesting that the economy is growing but the chances of a Taper remain some time off.
– In this vein, Minneapolis Fed President Kocherlakota said that the Fed might need more stimulus to get unemployment down. He even used the “whatever it takes” mantra so beloved by the ECB’s Mario Draghi, suggesting that the Taper is not set in stone.
– So at the close the Dow was up 0.36%, the Nasdaq rose 0.69% and the S&P 500 hit a high of 1704, but couldn’t sustain it, closing at 1699 up 6 points or 0.37%. Don’t forget the Debt Debate though.
– In Europe, the weaker-than-expected UK Q2 GDP (1.3% v 1.5% expected and last) knocked Sterling but the FTSE rose 0.22%. The DAX was largely unchanged -0.02% while the CAC fell 0.20%. In Milan, stocks fell out of bed as renewed instability in the political scene. Stocks in Madrid rose 0.31%.
– On Forex markets, GBP is down from near 1.61 prior to the GDP miss but recovered from a low of 1.5997 to sit at 1.6037 for a fall of just 0.26%. Euro (1.3483) is off 0.31%, the Yen (USDJPY 98.91) has lost 0.48% and the Aussie dollar’s weakness continued with a low at 0.9337 before a recovery to 0.9355 now for a loss of 0.12%.
– On Commodity markets, Nymex Crude rose 0.25% to $102.92, Gold is at $1338 oz and Silver is up 1.39% to $21.86. Copper is back above $3.30 a pound and on Ag markets, Corn is up 0.49%, Wheat rose 1.16% and Soybeans fell 0.28%.
– Closer to home, the SPI200 Futures on the Sydney Futures Exchange are up 11 points at 5315 while the 3- and 10-year bond futures are largely unchanged.
On the data front Japanese CPI is out this morning, as is the ANZ’s Kiwi Business confidence index and the Chinese Business Sentiment Indicator. Tonight EU economic sentiment, consumer confidence, industrial confidence and services sentiment are all out, along with French GDP which could be ugly. German CPI is out as is more US consumption data.
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