In European Equity Markets the pan-European Stoxx 600 closed 0.7% lower in the end of week session, with basic resources shedding 2% while banks and retail stocks were the only sectors trading in positive territory, each up just 0.2%. The European blue chip index’s biggest loser Friday was Swedish tech giant Hexagon, which saw its shares down 13% after warning of a decline in second-quarter sales due to the U.S.-China trade war. The company also announced that it would be cutting 700 jobs.
In Currency Markets the U.S. dollar jumped on Friday after the economy added more jobs than expected in June, dampening expectations that the Federal Reserve will cut rates aggressively to stave off a slowdown. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, jumped 0.7% to a three-week high of 96.968. The euro and sterling both lost over half a cent against the dollar on the news, the euro falling as low at $1.1208 and the pound falling to a six-month low of $1.2482.
In Commodities Markets brent oil ticked higher on Friday, supported by tensions over Iran and the decision by OPEC and its allies to extend a supply cut deal until next year, while U.S. benchmark crude prices fell on weak economic indicators. Brent was up 53 cents at $63.83 per barrel. U.S. WTI fell 18 cents to $57.16. The U.S. market was closed on Thursday for a holiday. A trade war between the United States and China has dampened prospects of global economic growth and oil demand, but talks between the two nations resume next week in a bid to resolve the deadlock.
In US Equity Markets stocks lost ground on Friday, retreating from record levels hit in the previous session, after strong U.S. job growth in June pushed investors to scale back bets on aggressive interest rate cuts by the Federal Reserve. The S&P 500 was down 0.79%, at 2,972.16 and the Nasdaq Composite fell 0.82%, at 8,103.42. The Philadelphia chip index fell 1.3% after Samsung Electronics Co Ltd forecast a steep decline in its second-quarter operating profit, as a supply glut and rising tariffs hit global demand for electronics.
In Bond Markets U.S. Treasury yields rose across the board on Friday, after data showed the world’s largest economy created far more jobs than expected in June, suggesting that the Federal Reserve would not have to be aggressive in cutting interest rates at this month’s monetary policy meeting. U.S. 10-year note yields rose to 2.06%, a one-week peak, from 1.95% late on Wednesday. They were last at 2.05%. Ten-year yields hit 1.93% on Wednesday, which was their lowest level since November 2016. Yields on U.S. 30-year bonds advanced to 2.557%, from 2.47% on Wednesday.