Colombia Balance of Trade Gap Widens

Trading Economics: Colombia recorded a USD 0.97 billion trade deficit in June of 2016, compared to a USD 0.82 billion gap in the same month of the previous year. Exports shrank 15.4 percent year-on-year to USD 2.72 billion as fuels and mining sales fell 20.3 percent; manufacturing products declined 21.5 percent and others went down 34 percent while food and agricultural products rose 17.4 percent. Imports declined 12.7 percent to USD 3.68 billion, as purchases of manufacturing dropped 14.8 percent and fuels went down 14.3 percent. Considering the first six months of the year, exports contracted 25.7 percent imports declined 20.9 percent. The trade deficit narrowed by 9.3 percent to USD 7.22 billion.

Closing Wrap

In European Equity Markets stocks fell on Friday putting the STOXX 600 on track to post its biggest weekly loss since the middle of June with all major sectors in the red on the day. The STOXX 600 index fell 0.7, retreating from a 7-week high reached earlier in the week. Vopak, the world's largest independent storage tank operator, was the top faller, falling 6.6 percent after it reported first half results hit by impairment charges. German retailer Metro was down 2.7 percent after Bernstein cut their rating on the stock to "underperform", citing weak margin progression and a likely capital increase into the demerger of some of its business units. Sweden's Nibe jumped 3.5 percent after reporting a pretax profit just above forecast.

In Currency Markets the U.S. dollar rebounded from nearly eight-week lows against the euro and Swiss franc on Friday a day after a top Federal Reserve official joined a growing chorus signalling support for a U.S. interest rate hike in coming months. The euro was last down 0.3 percent against the dollar at $1.1318, below a nearly eight-week high of $1.1365 touched Thursday. The dollar was up 0.5 percent against the Swiss franc at 0.9589 franc  after hitting a low of 0.9532 Thursday. Against the yen, the dollar was last up 0.33 percent at 100.20 yen. While the dollar index was last up 0.42 percent at 94.553, it remained on track for a more than 1 percent decline for the week given that scepticism over a 2016 Fed rate hike.

In Commodities Markets  oil prices fell as much as 1 percent on Friday, retreating from eight-week highs, as market participants took profits from one of this year's strongest rallies in crude, which analysts called fundamentally unjustified.  Brent crude was down 0.5 percent, at $50.60 per barrel. U.S. West Texas Intermediate crude was flat at $48.22 a barrel after reaching $48.75, its highest since July 5. Spot gold fell as much as 1.5 percent to a session low of $1,337.37 per ounce. Spot silver was down 2.19 percent at $19.30 an ounce, while platinum inched lower at $1,111.24. Palladium was down 1.04 percent at $705.47, after hitting a one-week high of $717.70 on Thursday.

In US Equity Markets   the Dow Jones and S&P 500 were lower on Friday morning, pulled down by energy stocks as oil prices fell and by financial stocks as investors again focus on the timing of the next rate hike. The Dow Jones Industrial Average was down 0.17 percent, at 18,565.24. The S&P 500 was down 0.23 percent, at 2,181.99. The Nasdaq Composite was up 0.07 percent, at 5,243.87. Eight of the 10 major S&P sectors were lower, led by the defensive sectors. The telecoms index was down 1.16 percent and the utility index was down 1.29 percent.  Estee Lauder  was down 3.9 percent as the cosmetics maker's quarterly sales rose less than expected. Deere was up 5.5 percent after the farming machinery maker raised its full-year profit outlook.

In Bond Markets U.S. Treasury prices fell on Friday as traders booked profits on recent gains ahead of next week's government debt supply and a meeting of global central bankers where Federal Reserve Chair Janet Yellen is scheduled to speak. Benchmark 10-year Treasury notes were down 15/32 price for a yield of 1.585 percent, up 5 basis points from late on Thursday, while the 30-year bond was 29/32 lower to yield 2.301 percent, up 4 basis points. The yield on two-year Treasury notes rose 4 basis points to 0.746 percent.

Source: Institute of Trading and Portfolio Management