Originally published by Rivkin Securities
Last week saw financial markets dominated yet again by geopolitical developments with first the turmoil in Italy, then Spain, and then US tariff announcements rattling share markets. Although the resolution of political impasses in Spain and Italy on Friday (for the time being) and the good US payrolls report for May helped boost US and Eurozone shares on Friday. For the week this left US shares up 0.5%, but Eurozone shares down 1.4%, Japanese and Chinese shares down 1.2% and Australian shares down 0.7%.
Commodity prices were mixed with copper up slightly but oil and iron ore down. Despite the volatility in markets the Australian dollar rose slightly to around 75.69 US cents with the greenback little changed. As far as oil prices are concerned, US futures prices ended last week at their lowest finish since April on the back of rising production and the possibility that OPEC and its allies may decide to boost output.
Gold futures fell back under $US1,300 an ounce on Friday, as the solid US employment data for May and settlement of political issues in Spain and Italy (and the move for North Korea and the US to continue the June 12 leaders meeting) combining to soften the outlook for gold.
Data Releases:
- Australia Retail Sales 11:30am AEST