By IFCMarkets
US stocks advanced on Thursday in the aftermath of the upward revision of US GDP. Banks and energy sector were leading the US markets up thanks to higher oil prices and unexpectedly positive data on US GDP. The US economic growth was revised up from 1.9% to 2.1% annualized. The US consumer spending was also revised up which supported investors sentiment. The recent US post-electoral economic rally was mainly predicated on Trump’s promise to bring the US economy back to 4% of annual growth. But last week’s failure with healthcare act implanted doubts in Trump’s ability to fulfill his pledges. US dollar index, a measure of a greenback’s value against a basket of six major currencies, was up 0.53%. Dow Jones industrial average rose 0.33% to 20,728.49 while Nasdaq added 0.28% to 5,914.34. S&P 500 index advanced 0.29% to 2,368.06 having touched its 7-day high. Financials added 1.2% with Bank of America and Citigroup pushing S&P 500 index up. The defensive utilities were the bottom-performers having lost 0.7%. Investors are also begging to anticipate the Q1 2017 earnings season. Expects predict the earnings could have risen 10.1% over the recent three months. Today markets await the US personal consumption data for February – a measure of potential inflation.
European stocks advanced on Thursday as investors came to terms with the launch of the negotiations over the official Brexit process in UK. EURUSD slumped 0.8% on Thursday and was flat overnight at $1,0676. The single currency is on track to post a 1.45% rise for the quarter. The data showed lower consumer inflation in Spain and Germany. The pan-European Euro STOXX 600 index advanced 0.51% to the highest since December 2015 with most of its sectors trading in the positive territory. FTSEurofirst 300 index added 0.47% on Thursday underpinned by higher oil stockpiles. Auto sector fell 0.74%. Carmaker Daimler saw its stocks tumble after it announced the plans to enter electric vehicle market. The UK’s sterling rose from its weekly low of $1,2375 hit on Wednesday to $1,2465. The stocks of the London Stock Exchange added 0.8% rebounding after the disappointment over the failed merger with Deutsche Boerse. British FTSE 100 closed little changed on Thursday. German DAX 30 rose 0.4% to 12,256.43.
Japanese stocks slumped to the 7-week low on Friday in choppy trade as investors booked profits in the last trading day of the fiscal year. USDJPY was steady at 111.885 yen after rise by 0.9% the day before. Nikkei index lost 0.8% to 18,909.26 on Friday finishing the quarter 1.1% lower. Broader Topix slid 1.0% to 1,512.60. The China’s CSI 300 index rose 0.4% on Friday and 4.2% over the quarter. Hong Kong shares lost 0.6% on Friday but ended the Q1 with increase of 9.8%. Australian stocks slid on Friday on losses in financials after a strong rally on Thursday. The S&P/ASX index lost 0.53% to 5,864.9 on Friday but managed to end this week up by 1.94%.
Oil futures prices retreated on Friday after a three-day winning streak, having run out of steam on stronger US dollar. Moreover, investors fret that increasing US supplies undermine OPEC oil production cuts. Brent crude futures lost 53 cents to $52.43 a barrel while US crude futures fell 36 cents to $49.99 a barrel. Both futures are on track to end the 1st quarter of 2017 with a 7%-loss. Later today Baker Hughes active rig count will be released, experts expect the benchmark to rise.
Goldis advancing on Friday and is on track to record a 7.9% increase in prices in Q1 2017 supported by the uncertainty over implementations of the Trump’s policy and several elections in Europe. Spot gold was flat at $1,243.20 an ounce while US gold futures lost 0.3% to $1,241.90. Platinum added 0.2% to $944.80 an ounce on Friday and 4.6% this quarter.
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