In major news on Friday, Chinese officials welcomed a U.S. invitation for talks, less than 24 hours after the U.S. President Donald Trump tweeted that the U.S. was “under no pressure to make a deal with China.”
The DJIA rose 147.07 points to 26,145.99 on Thursday to post a three-day winning streak with Apple contributing the most to the gains. Apple rose 2.4% on Thursday after the company unveiled three new iPhones on Wednesday. The S&P 500 climbed 0.5% to 2,904.18 on Thursday, led by a 1.2% gain in tech. The broad index also rose for a fourth straight day.
On the data front, US Core Retail Sales (MoM) data for the month of August is scheduled to be released on Friday. Core Retail Sales is expected to advance 0.5% while in the previous month the sales rose by 0.6%. Retail Sales (MoM) data for the month of August also scheduled for Friday is expected to advance 0.4% while in the previous month the sales rose by 0.5%. Industrial Production (MoM) for August also scheduled for Friday is expected to rise 0.3% while in the previous month it advanced by 0.1%.
European stocks traded higher on Friday morning after an unexpectedly sharp interest rate hike in crisis-hit Turkey supported the lira and global risk appetite. The FTSE 100 was higher by 0.33% while the DAX 30 advanced 0.31% at the time of writing. Miners and technology companies led the advance in the Stoxx Europe 600 Index as prospects for U.S.-China trade talks and action by the Turkish Central Bank’s action fostered a positive mood across the board.
Meanwhile, both the European Central Bank and Bank of England held interest rates steady at 0% and 0.75% on Thursday. The markets have deciphered the short, medium and long-term inflation and economic growth forecasts from the ECB president to imply that the earliest possible timing of an interest rate hike by the ECB would be at/around September 2019.
Asia-Pacific markets were largely positive on Friday. Semiconductor stocks in Asia saw a strong rebound on Friday. The Nikkei 225 ended 1.2% higher to 23,094.67-the highest closing point since early February. Japanese Chip-related shares and machinery stocks gained ground, with Advantest Corp surging 5%, Tokyo Electron up 1.6% and Yaskawa Electric jumping 7.6 percent. Kospi ended higher by 1.4% as major chip manufacturers Samsung Electronics and SK Hynix gained more than 4% for the day.
In the Greater China markets, the Hang Seng extended its gains from yesterday to close higher by 1.03%. On the other hand, on the mainland, the Shanghai Composite closed lower by 0.18%. The moves in the region came after China reported that its fixed asset investment growth in the first eight months of 2018 had reached a new low, despite industrial output and retail sales data coming in above the expectations.
US Dollar Index futures inched down 0.07% to 94.43. The dollar dipped on Friday after weaker-than-expected U.S. inflation data, with the currency already sagging on signs of reduced trade tensions between the United States and China.
In the Commodity Markets, Gold inched up to 1205.11 and Silver rose to 14.170 at the time of writing. Oil on Friday clawed back some of its losses from the previous session, when prices fell the most in a month, with concerns about supply countering worries that emerging market crises and trade disputes could dent demand.
In the Cryptocurrency Markets, Ethereum rose to 196.45, Ripple inched down to 0.2616 and Bitcoin fell to 6398.80 at the time of writing. In news supportive of Ripple, Japanese financial giant SBI Holdings announced that it is soon to launch a payments application for iOS and Android devices powered by Ripple’s distributed ledger technology. Takashi Okita, chief executive of SBI Ripple Asia – a joint venture between SBI Holdings and the San Francisco-based Ripple – revealed the website of the application, named MoneyTap, on Wednesday.
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