Daily summary: US stocks struggled for momentum amid weak data

 

European indices closed in the red on Friday. UK government added France and the Netherlands to its coronavirus 14-day quarantine list which negatively affected travel stocks. Also disappointing macroeconomic data from China and concerns about a delay in US fiscal stimulus weighed on market sentiment. All eyes will be on the upcoming  meeting between US and Chinese officials about their Phase 1 trade deal on Saturday. Dax 30 dropped 0.6%, CAC 40 fell 1.4% and FTSE 100 finished 1.5% lower.

 

US indices swung between small gains and losses on Friday as disappointing US retail trade data indicate that the country's economy may take longer than expected to recover. Investors remain concerned about the lack of progress in negotiations on a new coronavirus aid package. Democrats are willing to cut their original $ 3.5 trillion proposal down by a third, but continue to demand financial aid to the states, while Washington rejected the Democrats' proposal and said it would spend up to $ 150 billion for local assistance. House Speaker Nancy Pelosi said the two sides would not strike a deal until Republicans added $1 trillion in aid to their bill.  The Senate is officially adjourned through Labor Day despite not coming to an agreement on its next coronavirus stimulus package.

During today's session gold dropped 1.69 % and is on course for its first weekly fall since beginning June. Bullion has declined 4% so far this week, its biggest weekly percentage fall since early March. Meanwhile silver fell over 6% and is also heading for the first weekly loss in over two months. Silver on Tuesday declined 15%, its biggest fall since October 2008.

WTI crude futures fell more than 0.65% and  Brent crude futures are trading 0.5% lower, as impasse in US stimulus negotiations weighed on sentiment. Next week oil traders will focus on OPEC, although Russian Energy Minister Alexander Novak said he does not expect quick decisions on output cuts.