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Equities - Weekly outlook: August 12 - 16

Published 08/11/2013, 09:30 AM
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Investing.com - U.S. stocks retreated from recent record highs on Friday, as uncertainty over when the Federal Reserve intends to begin winding down its asset purchase program weighed. 

The S&P 500 was down 0.36%, leaving it 1.1% lower for the week. The Dow Jones industrial average slid 0.47% and ended the week 1.5% lower. The Nasdaq lost 0.25% on Friday to end the week 0.8% lower.

Comments by senior Fed officials during the week, including the heads of the Federal Reserve Banks of Chicago and Dallas, indicated that the U.S. central bank could begin to scale back its asset purchase program as early as next month if the economy continues to pick up.

In Europe, stocks were boosted by upbeat economic data out of China. Official data on Friday showed that Chinese industrial output rose significantly more-than-forecast in July and consumer price inflation remained unchanged.

The reports came one day after Chinese trade data showed that both imports and exports rose in June, indicating that the slowdown in the economy is stabilizing.

Germany’s DAX rose 0.24%, while France’s CAC gained 0.30%. Meanwhile, Britain's FTSE 100 advanced 0.82% after a report showed that the U.K. trade deficit narrowed to its lowest level in almost a year in June.

In Asia, markets were mixed on Friday, with Japan’s Nikkei up just 0.07% at the close. Elsewhere, Australia's S&P ASX 200 was down 0.19%, while the Hang Seng 40 climbed 0.70% and China’s Shanghai Composite gained 0.4%.

Gold futures edged higher on Friday, but gains were limited, with gold futures for December delivery up 0.3% to USD1,313.50 a troy ounce at the close.

Oil prices rallied as the strong data out of China boosted the outlook for the commodity sector, with crude futures for delivery in September jumping 2.7% to settle at USD106.17 a barrel.




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