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Morning Market Update: Soft Start Ahead

Global stocks showed mixed movement on Friday night as investors weighed the impact of data from China amid concerns over the timeline the Fed will ease its stimulus program.

European stocks advanced to their highest level since May as mining companies rallied after a report showed Chinese industrial production increased at a faster-than-expected pace, outweighing concern that the Federal Reserve will reduce the pace of its bond-purchase program.

A report from the Chinese National Bureau of Statistics showed that industrial output rose 9.7% in July from a year earlier, beating the 8.9 percent median forecast by economists.

The Stoxx 600 Index rose by 0.6% to 305.9 for the week. The gauge has rallied 11% since June 24. In London, the FTSE 100 added 54 points (+0.8%) to settle at 6583 while the German DAX put on 20 points (+0.2%) to finish trading at 8338.

Across the Atlantic, U.S. stocks fell giving the S&P500 its biggest weekly loss since June, as investors pulled money from exchange-traded funds and weighed growing signs the Federal Reserve will cut stimulus as early as next month.

The S&P 500 fell by six points (-0.4%) to close at 1691 while the Dow Jones dropped 73 points (-0.5%) to sit at 15426. The blue chip gauge lost 1.5% in the past five trading days, halting a string of six weekly advances.

In the commodity markets, gold rose for the third straight day on speculation that demand will increase amid signs of a pickup in China’s economy, the world’s second-biggest consumer of the metal. Silver advanced to a two-week high.

Bullion futures for December delivery rose 0.2% to settle at US$1312.20 an ounce on the Comex in New York.

Crude oil climbed for the first time in six days as industrial production increased in China, the second-biggest oil-consuming country. Crude for September delivery advanced $2.57 to settle at US$105.97 a barrel on the New York Mercantile Exchange.

There is no major local economic news expected during today’s session.


Morning Market Update: Soft Start Ahead is a post from: Australian Stock Report Market Pulse Blog