Key week for US economic data as indices produce strong weekly gains – ShareCafe

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US stocks were up on Friday, ending just below best levels. Each of the major averages rose more than 2.5% for the week and ended a big three-week losing streak in which S&P lost nearly 8.5%.

This week, in terms of data, we have the US consumer price index for August on Tuesday and the producer price index a day later, as well as US retail sales and this will be the last key data the Fed will consider after the strong weekly jobs data. there’s last Friday – which will help determine whether the Fed will raise the target range for the fed funds rate by 50 or 75 basis points later this month.

On Friday, the Dow Jones Industrial Average gained 1.19% to 32,151.71. The S&P 500 jumped 1.53% while the Nasdaq Composite climbed 2.11%

The case for the current bear market is that the Fed will continue to tighten monetary policy, remove liquidity from the market and cause stocks to plummet. On the other hand, the market recovery this week showed that the economy continues to resist, supported by favorable economic reports.

Across all S&P500 sectors, defensive sectors underperformed while high beta sectors rose.

Top performing industries included diversified mining, steel and iron, food retail, oil and gas, silver.

As for the European energy crisis, across Europe, as winter approaches, energy rationing seems inevitable. Governments are spending billions to protect their countries from skyrocketing energy bills, with leaders fearing energy prices will spin out of control as temperatures drop.

In the UK, where annual household energy bills are expected to jump 80% in October, new Prime Minister Liz Truss is inheriting the energy crisis. On Thursday, she announced a plan to cap energy bills for two years, a move seen as a bigger economic intervention than any ever staged by the UK, even in the early months of the Covid-19 crisis. 19.

Whether or not she and other European leaders can get energy costs under control will determine whether industries and citizens see blackouts and a deep recession.

Currencies

The US dollar was on the defensive on Friday, with the dollar index poised to post a three-week winning streak in which it jumped more than 3.5%. The dollar index was down 0.7% as the greenback was weaker on major crosses.

An Australian dollar strengthened against the US dollar on Friday, buying 68.35 US cents (Friday: 67.54 US cents), 58.80 pence sterling, 97.25 yen and 67.73 euro cents.

Bitcoin futures rose 10.3%.

Goods

Iron ore futures are pointing to a 3.7% gain.

Gold gained $8.40 or 0.5% to US$1,729 an ounce.

Silver rose $0.33 or 1.8% to US$18.77 an ounce.

Copper added $4.10 or 1.2% to US$356.80 per pound.

Oil gained $3.25 or 3.9% to US$86.79 a barrel.

Futures contracts

SPI futures point to a 1.2% gain.

Numbers around the world

Across the Atlantic, European stock markets closed higher. Paris gained 1.4%, Frankfurt gained 1.4% and London’s FTSE closed up 1.2%.

Asian markets closed higher. Tokyo’s Nikkei gained 0.5%, Hong Kong’s Hang Seng gained 2.7% and China’s Shanghai Composite closed up 0.8%.

On Friday, the Australian stock market gained 0.7% to 6894.

Ex-dividends

Eleven companies are ready to trade without the right to a dividend.

Chorus (ASX:CNU) pays 16.1043 cents unstamped
Dusk Group (ASX:DSK) pays 10 cents fully franked
Duratec (ASX:DUR) pays 1.5 cents fully franked
Diverge (ASX:DVR) pays 3.5 cents fully franked
HUB24 (ASX:HUB) pays 12.5 cents fully franked
Joyce Corporation (ASX:JYC) pays 10.5 cents fully franked
L1 Long Short Fund (ASX:LSF) pays 4.5 cents fully franked
MotorCycle Holdings (ASX:MTO) pays 8 cents fully franked
Paragon Care (ASX:PGC) pays 0.6 cents fully franked
Perseus Mining (ASX:PRU) pays 1.64 cents unstamped
Saunders International (ASX:SND) pays 2 cents fully franked

Dividends payable

Five companies are ready to pay eligible shareholders today.

Group Credit Corp (ASX:CCP)
Computer Sharing (ASX: CPU)
Cyclopharm (ASX:CYC)
Fiduciary Group (ASX:FID)
Proximity Centers (ASX:VCX)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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