US Consumer Sentiment Improved Slightly

Consumer sentiment for the United States came in at 90.4 in August 2016 from 90 in July but well below market expectations of 91.5, preliminary figures showed. Consumer expectations improved firmly while current conditions deteriorated. Consumer Confidence in the United States averaged 85.92 from 1952 until 2016, reaching an all-time high of 111.40 in January of 2000 and a record low of 51.70 in May of 1980. Consumer Confidence in the United States is reported by the University of Michigan.

Weekly Market Wrap

In European Equity Markets shares edged back after setting a fresh seven-week high on Friday, with weaker miners offsetting gains in companies such as A.P. Moller-Maersk , which rose sharply following its earnings update. Shares in Maersk ended up 3.1 percent, having risen as much as 6.9 percent in early deals, after the Danish shipping and oil giant stuck to its 2016 forecast despite a sharp fall in quarterly net profit. The STOXX Europe Basic Resources index fell 1.8 percent, the worst sectoral performer, hit by falls of around 3 percent in shares of Rio Tinto, Anglo American and BHP Billiton. The STOXX Europe 600 index was down 0.2 percent after hitting a seven-week high earlier in the session, recouping all of its post-Brexit losses.

In Currency Markets the U.S. dollar weakened on Friday after U.S. retail sales were unexpectedly flat in July, while producer prices also unexpectedly fell in the month, raising concerns about the strength of third-quarter economic growth.  The dollar dropped 0.46 percent against a basket of six major currencies (DXY) to 95.412, after falling as low as 95.254, the lowest in a week. The greenback also fell 0.89 percent against the yen to 101.05 and 0.57 percent against the euro to $1.1197. The Fed will release minutes from its July meeting next Wednesday, with the focus then likely to turn to Chair Janet Yellen's speech at the Fed's Jackson Hole symposium on Aug. 26.

In Commodities Markets oil prices rose about 2 percent on Friday, on track for their biggest weekly gains since late April, amid a short covering rally triggered by comments from Saudi Arabia's oil minister in the previous session about possible action to help stabilize the market.  Brent crude futures were 84 cents higher at $46.88 at barrel after touching a more than three-week high of $46.98 earlier in the day. U.S. crude rose 96 cents to $44.45 after touching its highest level since July 22 at $44.57 per barrel. Prices jumped nearly 5 percent on Thursday after Saudi Arabia's energy minister said that oil producers would discuss potential action to stabilize oil prices during a meeting next month in Algeria.

In US Equity Markets stocks opened slightly lower on Friday as tepid economic data weighed, a day after all three major indexes closed at record highs for the first time since 1999.  The S&P 500's financial index fell 0.5 percent and was the biggest loser among seven of the benchmark's 10 major indexes that were in the red. Shares of Bank of America, JPMorgan, Citigroup fell between 0.8-1.0 percent and were among the top five stocks that dragged down the S&P. Goldman Sachs' 0.8 percent fall weighed the most on the Dow. The S&P 500 was down 3.06 points, or 0.14 percent, at 2,182.73. Nvidia rose 5.6 percent after the chipmaker reported its fastest quarterly sales growth in nearly five years. The stock was the top percentage gainer among S&P companies.

In Bond Markets Benchmark U.S. Treasury yields fell to their lowest level in nearly two weeks on Friday after weaker-than-expected readings on U.S. retail sales and producer prices suggested U.S. inflation may not be gaining steam and that the Federal Reserve could be slow to raise overnight interest rates. Yields on benchmark 10-year Treasury notes fell to their lowest since Aug. 1 after the data, touching a low of 1.48 percent. The 30-year Treasury bond hit its lowest yield since Aug. 5, at 2.21 percent.

Source: Institute of Trading and Portfolio Management