• Trump bans dealings with Chinese owners of TikTok, WeChat
• Gold retreats from record high
European indices managed to erase early losses and finished final session of the week slightly higher. Recent industrial output figures from Germany and France beat market expectations and German exports increased by 14.9% from a month earlier, most since 1990. However increasing geopolitical tensions and mixed US employment report weighed on market sentiment. During today's session DAX 30 added 0.5%, CAC 40 finished flat and FTSE 100 gained 0.1% For the week, the DAX 30 advanced 2.8%, CAC 40 jumped 2.2%, FTSE 100 advanced 2.3%.
Meanwhile US indices are shifting between gains and losses. President Trump signed executive orders to ban transactions with Chinese apps Tencent's WeChat and ByteDance's Tiktok. US Treasury has imposed sanctions on Hong Kong chief executive Carrie Lam, and 10 other top officials from Hong Kong and mainland China for "implementing Beijing's policies of suppression of freedom and democratic processes". As if that was not enough, Trump decided to reimpose 10% tariffs on some Canadian aluminum products while Ottawa pledged retaliation. Meanwhile, closely watched NFP report showed the US economy added more jobs than expected in July, mainly boosted by a jump in government payrolls. However private sector employment and manufacturing payrolls came in below analysts' expectations. At the same time, many investors lost hope that US lawmakers will reach an agreement on coronavirus stimulus package today.
Gold pulled back from previous session's record high of $2,074 an ounce to trade around $2,027 an ounce amid a stronger US dollar. It seems however, that gold for the ninth time in a row will finish the week in green. This would be the longest streak of weekly gains in approximately ten years. Gold rose over 35% this year thanks to ultra-low-interest rates and concerns regarding the recovery of the global economy.
For the same reason Oil prices dropped more than 1% on Friday, pulling back from a week of gains. The surging number of new coronavirus cases remains the dominant issue for the demand outlook. Spread of pandemic continue to accelerate in the United States , while India recently reported a record daily jump in infections. Almost 720,000 people have died in the worldwide pandemic. During today’s session Brent crude lost 1.3%, to $ 44.52 a barrel and WTI crude fell 1.4%, to $ 41.35 a barrel. Brent is set for a weekly gain of 2.8%, while WTI is on track to rise 2.7%