US stocks closed on the right foot this week, their best since July
- The Dow Jones Industrial, the S&P 500 and the Nasdaq Composite recorded gains of between 0.7% and 1.6% on Friday.
- US retail sales surprised positively, while the University of Michigan’s Consumer Sentiment Index fell.
- USD / JPY hit five-year highs above 114.00.
- Bitcoin broke the $ 60,000 mark and is trading on all-time highs.
US stocks ended the week better, the best since July on the back of solid corporate earnings and a better-than-expected retail sales report. US T-bond yields rose while the greenback fell.
The Dow Jones Industrial Average rose 1.1% to 35,294.76, up 1.6% from the week. The S&P 500 gained 0.7% to 4,471.37 and rose 1.8% over the course of the week, while the heavy-tech Nasdaq Composite climbed 0.5% to 14,897.34 and gained 2.2% over the course of the week .
Mixed macro data from the US failed to suppress the rise in stocks
US retail sales rose by a surprise in September, suggesting robust demand for goods. The headline showed an increase of 0.7% more than the 0.2% decline forecast by analysts. Excluding cars, it expanded 0.8% higher than the estimated 0.5%.
As coronavirus infections increased in August and September, demand for services fell as people shifted their spending to goods. Rising goods spend would likely put additional pressure on supply chains that could not keep pace with rising demand.
In addition, the University of Michigan Consumer Sentiment Index fell to its lowest level since 2011. The preliminary reading fell to 71.4 from 72.8 in September, data showed. The estimates were 73.1. In addition, according to the report, consumers expect an inflation rate of 4.8% for the next year.
The US dollar index, which tracks the performance of the greenback against a basket of six rivals, lost 0.02% to last at 93.957, while 10-year US Treasury bond yields closed five basis points (bps) at 1.574 % closed and closed for the first of five weeks.
In the forex market, EUR / USD rose 0.04% to close at 1.1601 while GBP / USD closed at 1.3743 on Friday, a 5-week high, up 0.52%. USD / JPY followed the 10-year US T-bond benchmark note coupon, which ended at 114.20 at a 5-year high, 0.46% during the day. AUD / USD held at its five-week high around 0.7414.
On the commodities market, gold (XAU / USD) lost 1.59% and closed at $ 1,767.20 troy ounce, while silver (XAG / USD) followed its trail and fell 0.98% to $ 23.28. The US crude oil benchmark Western Texas Intermediate (WTI) rose 1.22% to $ 81.93 a barrel.
In the crypto environment, Bitcoin is trading at new all-time highs of over $ 62,000 at the time of writing, with a 90% chance that the SEC will approve a Bitcoin ETF while Ethereum trades at around $ 3,878.