US Treasuries capped the first weekly gain since the election, while Wall Street posted modest gains in thin trading before the holidays. Gold fell for a seventh week, while crude settled at the highest in 17 months. The Australian dollar slid 0.6 per cent to US71.74c, briefly touching an overnight low of US71.60c.
The S&P; 500 Index closed 0.4 per cent below a record, while the Dow Jones Industrial Average edged higher to 19,930. Trading volume was 54 per cent lower than the 30-day average at this time of day. The yield on the 10-year Treasury note edged lower as US data did little to alter perceptions on the economy's strength, while China signalled it's open to slower growth. Crude ended at $US53.02 a barrel in New York.
The US Commerce Department on Friday said new home sales increased 5.2 per cent to a seasonally adjusted annual rate of 592,000 units last month. That was the second highest pace since 2007. Economists had forecast single-family home sales, which account for about 9.5 per cent of overall home sales, rising 2.1 per cent to a 575,000-unit rate last month.
Separately, the University of Michigan said its consumer sentiment index edged up to a reading of 98.2 from 98 earlier this month. That was the highest reading since January 2004.
Financial markets showed little movement on the last trading day before the Christmas holidays as investors assess the post-election rally that's added trillions to the value of global equities and lifted the US dollar to a multi-year high.
"No one wants to take additional risk between now and the end of the year. They don't want to jeopardise those gains," said Stan Shipley, strategist at Evercore ISI in New York.
Trading volumes have been muted during the week, which was the last full week of trading this year. US markets will be shut on Monday (Tuesday AEDT) for the holiday-in-lieu of Christmas Day which falls on a Sunday this year. The ASX will be closed on Monday and Tuesday.
On Friday, Australia's benchmark S&P;/ASX 200 Index and the broader All Ordinaries each fell 0.3 per cent to 5628.1 points and 5675.7 points, respectively. Over a fairly subdued week in terms of trading volumes, the ASX 200 finished up a healthy 1.7 per cent and the All Ordinaries jumped 1.5 per cent.
Chinese President Xi Jinping indicated he's open to economic growth slowing below the government's 6.5 per cent target. While trading in European equities was 40 per cent lower than the 30-day average, the removal of a legal cloud over Deutsche Bank and rescue of Monte Paschi in Italy lifted banks in the region.
Stocks
- The S&P; 500 rose 0.1 per cent to 2263.72 at 4pm in New York. The index climbed 0.3 per cent in the week. The Dow finished up less than 0.1 per cent on Friday at 19,934.
- Strong data on housing and consumer confidence did little to alter perceptions of the US economy.
- "It's going to get tough (for the Dow) to get over that 20,000 mark. We can do it, but it's going to take a catalyst to move investors," said Jeff Kravetz, a Phoenix-based regional investment director of the Private Client Reserve at US Bank.
- The Nasdaq Composite added 15.27 points, or 0.3 per cent, to 5462.69.
- The Stoxx Europe 600 Index fell less than a point and is little changed in the five days.
- Deutsche Bank climbed 0.3 per cent as it agreed to pay $US7.2 billion to resolve a years-long US investigation into its dealings in mortgage-backed securities.
- A bailout for Italy's oldest bank, Monte dei Paschi, was approved as Italy's government looked to end a protracted banking crisis that has gummed up the economy.
Bonds
No one wants to take additional risk between now and the end of the year. They don't want to jeopardise those gains
Equity strategist Stan Shipley
- US Treasuries gained as the 10-year yield fell one basis point to 2.54 per cent.
- The interest rate on a fixed US 30-year mortgage has increased more than 70 basis points to an average of 4.30 per cent, the highest level since April 2014, according to data from mortgage finance firm Freddie Mac.
- Italian 10-year yields declined three basis points to 1.82 per cent, while German bund yields slid four basis points to 0.21 per cent. Australia's 10 year yield last was 2.87 per cent.
Currencies
- The Australian dollar slid 0.6 per cent to US71.74c, briefly touching an overnight low of US71.60c.
- The US dollar slipped 0.1 per cent versus the euro to $US1.04482, while it traded for 117.18 yen.
- The value of the US dollar's net long position fell to $US22.45 billion in the week ended December 20, from $US28.01 billion the previous week, according to Reuters calculations and data from the Commodity Futures Trading Commission released on Friday. Net shorts on the yen rose again, as they have every week since the start of November, touching the largest number of contracts since early December 2015, at 75,449 contracts. The dollar's value against the yen has risen nearly 12 per cent since November 1.
- The dollar index has gained 5.0 per cent since Donald Trump's US presidential victory on November 8, but was little changed for the week.
- The pound fell 0.4 per cent to $US1.2274, touching the lowest level versus the greenback since November 2, even after data showed the UK economy expanded more than initially reported in the third quarter.
- Speculators dialled back their net bearish bets on Eurodollar futures from record highs after the Federal Reserve as expected raised interest rates last week, according to the latest Commodity Futures Trading Commission data.
Commodities
- As futures retreated this week, the price of iron ore for delivery to China's Qingdao port fluctuated. On Friday it rose $US1.99, or 2.6 per cent, to $US78.14 a tonne, rebounding from the previous day's 3.8 per cent slump, according to Metal Bulletin.
- Benchmark copper on the London Metal Exchange was untraded in official rings, but bid down 0.4 per cent at $US5495.5 a tonne. That compares with a one-month low of $US5419.5 a tonne hit on Thursday.
- Lead hit $US2576.50 late in November, its highest since August 2011. It traded down 0.7 per cent to $US2110 and zinc was bid 1.1 per cent lower at $US2600 a tonne.
- Aluminium slipped 0.2 per cent at $US1719, tin rose 0.3 per cent to $US21,000 and nickel lost 1.2 per cent to $US10,600 a tonne.
- Gold rose on Friday in New York but not enough to stave off a seventh weekly slide, the longest slump since May 2004. The metal settled 0.2 per cent higher at $US1133.60 an ounce in New York.
- West Texas Intermediate crude for February delivery in New York were little changed to cap a weekly advance of 2.2 per cent. The contract settled at $US53.02 a barrel, the highest since July 14, 2015
- US energy companies added oil rigs for an eighth week in a row, extending a seven-month drilling recovery as crude prices remained near a 17-month high. Drillers added 13 oil rigs in the week to December 23, bringing the total count up to 523, the most since December 2015, but still below the 538 rigs seen a year ago, energy services firm Baker Hughes said.
with Reuters