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Top 5 Things to Know in the Market on Friday

- Here are the top five things you need to know in financial markets on Friday, September 14:

1. U.S. consumer in spotlight on economic agenda

Coming after Thursday’s weaker-than-expected inflation data, shopping takes the spotlight in economic indicators with numbers on retail sales and consumer sentiment arriving later on Friday.

The Commerce Department will release its retail sales data at 8:30 AM ET (12:30 GMT), with a solid rise expected for August, although a slightly lower one from the month before.

Economists expect that retail sales rose 0.4% last month and that core retail sales, which exclude auto sales, rose 0.5%.

At 10:00 AM ET (14:00 GMT), the focus will shift to the University of Michigan’s preliminary measure of consumer sentiment for September.

The consumer sentiment index is expected to have risen to 96.7 from 96.2 in August. There will also be numbers on current consumer conditions and inflation expectations.

In addition, investors will get data on July business inventories, August import and export prices and last month’s reading of industrial production.

And for Fed watchers, Chicago Federal Reserve president Charles Evans will speak on the economy and monetary policy at 9:00 AM ET (13:00 GMT) at the Northeast Indiana Regional Economic Forum.

2. China once again shrugs off Trump threats

After U.S. President Donald Trump suggested that he was “under no pressure to make a deal with China, they are under pressure to make a deal with us”, Beijing was quick to shrug off the claim.

“The Trump administration should not be mistaken that China will surrender to the U.S. demands,” state run China Daily published on Friday.

“It has enough fuel to drive its economy even if a trade war is prolonged,” the paper insisted.

The response came even as data released Friday showed that Chinese fixed investment slowed to just 5.3% in the first eight months of the year, the lowest level on record. The data suggests that businesses in the world’s second largest economy are hesitant to invest as they worry over the prospect of a full-blown trade war.

In more encouraging data, China’s retail sales and industrial production for August both rose more than expected.

3. U.S. futures rise ahead of data dump

U.S. futures pointed to another day of gains on Wall Street Friday as investors looked ahead to a slew of data and kept an eye on trade developments. At 5:46 AM ET (9:46 GMT), the blue-chip Dow futures rose 41 points, or 0.16%, S&P 500 futures gained 5 points, or 0.15%, while the Nasdaq 100 futures traded up 28 points, or 0.37%.

Elsewhere, led by technology, autos and mining stocks, European benchmarks rose on Friday on hopes of new trade talks between the U.S. and China.

Earlier, Asian stocks ended the session mostly higher, though China’s Shanghai Composite broke the trend with losses of 0.2%.

4. Oil prices recover from sharp decline, U.S. rig count on tap

Oil prices recovered on Friday from the prior session’s sharp decline and remained on track for solid weekly gains as investors looked ahead to the latest gauge of U.S. production.

U.S. crude oil futures gained 0.44% to $68.89 at 5:47 AM ET (9:47 GMT), while Brent oil traded up 0.20% to $78.34.

Both barrels were still on track for weekly gains of 1.8% and 2.0%, respectively, as traders await the latest data on U.S. crude production from Baker Hughes.

The U.S. rig count, an early indicator of future output, rose by 2 to 862 last week, hovering near its highest levels since March 2015.

5. Cable hits 6-week high as BoE warns of rate hikes after no deal Brexit

The pound hit a six-week high against the dollar on Friday as Bank of England governor Mark Carney reportedly warned that a no deal Brexit would likely mean higher interest rates.

Carney warned that if the UK and European Union were unable to forge trade deals that the result could be as bad as the 2008 financial crisis, driving the pound lower. The corresponding increase in inflation would likely require the BoE to tighten policy.

At 5:46 AM ET (9:46 GMT), GBP/USD was last up 0.11% at 1.3123, after hitting 1.3138 earlier, its highest level since August 1.

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