United States Producer Prices Rose 0.3% in September

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From Trading Economics: Producer prices for final demand in the United States rose 0.3 percent month-over-month in September 2016 after a flat reading in August and better than market expectations of a 0.2 percent gain. Prices for final demand goods advanced 0.7 percent following a 0.4 percent decline the previous month, and prices for final demand services inched up 0.1 percent, the same as in August. Year-on-year, the final demand index increased 0.7 percent, the largest 12-month rise since advancing 0.9 percent in December 2014.

Market Closing Wrap

In European Equity Markets stocks rose on Friday to claw back ground lost in the previous session, with banking stocks outperforming, while hedge fund Man Group also rose higher. The pan-European STOXX 600 index rose 1.3 percent, after touching during the previous session a three-month low.  Shares in Banca Popolare di Milano and Banco Popolare both rose more than 6 percent as investors bet shareholders would approve a merger to create Italy's third-largest lender when they meet on Saturday. Shares in British hedge fund Man Group jumped 13.8 percent to top STOXX gainers after the company posted a rise in assets under management, and announced a share buyback and the acquisition of investment management company Aalto.

In Currency Markets the dollar rose on Friday, on track for its largest weekly gain in more than seven months against the euro, after strong U.S. retail sales and producer prices data for September reinforced expectations the Federal Reserve would raise interest rates in December. Against the yen, the dollar rose 0.5 percent to 104.28 . It was up 1.2 percent for the week. The euro fell 0.4 percent to $1.1015, heading back toward its Thursday's low of $1.0982, its weakest level since late July. It was down 1.6 percent for the week, its worst weekly performance since late February. The dollar index added 0.3 percent to 97.788. The U.S. retail sales data, which showed a 0.6 percent rise last month after declining 0.2 percent in August, supported the dollar's gains.

In Commodities Markets  oil fell below $52 a barrel on Friday, giving up an earlier gain, as abundant crude supplies outweighed tighter U.S. fuel inventories and OPEC's plans to cut output. Global benchmark Brent was down 4 cents at $51.99, having traded as high as $52.55 earlier. U.S. crude gained 20 cents to $50.64. U.S. crude inventories overall rose by 4.9 million barrels, the first increase in six weeks, the government's EIA reported on Thursday.  Spot gold was down 0.3 percent at $1,253.61 an ounce. Among other precious metals, silver inched up 0.1 percent at $17.46 an ounce. Platinum fell 0.5 percent to $932.25 an ounce and palladium was unchanged at $638.10 after touching a new three-month low of $633.22 an ounce.

In US Equity Markets stocks were higher on Friday as better-than-expected results from JPMorgan and Citigroup lifted financial stocks. The S&P 500 was up 0.57 percent, at 2,144.78 and the Nasdaq Composite was up 0.63 percent, at 5,245.96. The S&P 500 financial index rose 1.4 percent, far outdoing the other seven major sectors that were higher. Shares of JPMorgan rose 1 percent after the lender beat estimates for revenue and profit. Citi rose 2.3 percent after its profit fell less than expected.  McDonald's fell 1.1 percent after the fast-food chain operator announced charges related to strategic changes it had outlined last year. HP Inc fell 1.8 percent after the company said it would cut about 3,000 to 4,000 jobs over the next three years.

In Bond Markets  U.S. Treasury yields rose across the board on Friday with 30-year bond yields hitting a four-month high as a rebound in Chinese inflation data eased concerns about sluggish growth from the world's second largest economy amid solid U.S. retail sales and inflation data.  Benchmark 10-year Treasury notes were last down 8/32 in price to yield 1.766 percent. The 30-year bond was the main target of investor selling on Friday, with prices falling by more than 1 point in early trading and yields hitting their highest since June 23. The long bond was last down 28/32 in price to yield 2.519 percent.

Source: Institute of Trading and Portfolio Management