Australian Market

Australia’s S&P/ASX 200 benchmark index closed 0.5% higher as commodity stocks staged an end-of-week rally. Shares of energy producers and iron ore miners led the way, with the heavyweight materials sector adding 1.9%. Tech and consumer stocks also rose, but financials edged lower as the sector fell for the ninth time in 10 days. The ASX 200 fell 1.2% for the week.

US Market 

U.S. stocks ended lower after producer-price data came in hotter than expected, disappointing investors who had hoped for signs of easing inflation before the Federal Reserve’s meeting next week. The S&P 500 fell 0.7% while the Dow Jones Industrial Average was down 0.9%. The technology-focused Nasdaq Composite Index slipped 0.7%. All three major U.S. indexes ended the week with losses, breaking a two-week winning streak. The S&P 500 retreated 3.4%.

In recent days, investors have grown increasingly worried that elevated inflation will force the Fed to keep lifting rates to higher levels than once expected, potentially pushing the U.S. economy into a recession. “Even though the market sometimes seems to ignore Powell, thinking he’s bluffing, he keeps reiterating that he will put this economy into a recession if he has to,” said Eric Sterner, referring to Fed Chairman Jerome Powell.

Commodities

Gold futures marked their highest finish in just over a week, after the U.S. November producer-price inflation came in slightly higher than expected. February gold rose 0.5% to settle at $1,810.70 per ounce on Comex, with prices for the most-active contract ending the week nearly 0.1% higher, according to Dow Jones Market Data. The settlement was the highest since Dec. 1.

Oil Futures

Oil futures turned lower, ending the week with a loss of nearly 12%. West Texas Intermediate crude for January delivery fell 1.3% to trade at $70.50 a barrel on the New York Mercantile Exchange. February Brent crude, the global benchmark, declined by 0.9% to $75.50 a barrel on ICE Futures Europe. The shutdown of the Keystone Pipeline following news of a leak late Wednesday provided some support to the oil market early Friday, but of greater concern were worries about a global recession and lower crude demand from China.

Forex

Major currencies were mixed against the US dollar in European and US trade. The Euro fell from highs near US$1.0587 to lows near US$1.0515 and was near US$1.0530 at the US close. The Aussie dollar rose from lows near US67.49 cents to highs near US68.12 cents and was near US67.95 cents at the US close. And the Japanese yen eased from near 135.59 yen per US dollar to JPY136.84 and was near JPY136.56 at the US close.

European Markets

European sharemarkets rose on Friday, snapping a five-day losing streak. Construction and material stocks gained 1.8%, with China’s easing of its strict Covid curbs aiding sentiment. Shares of Credit Suisse jumped 6.8% after the bank raised 2.24 billion Swiss francs. The continent-wide FTSEurofirst 300 index gained 0.8% but was down 0.9% over the week. And the UK FTSE 100 rose 0.1% but fell 1.1% for the week.

Asian Markets

Earlier, in Asia, Japan’s Nikkei Stock Average ended 1.2% higher, led by gains in chip and other electronics shares, as concerns eased about higher costs of fuel and borrowing. Chinese shares ended higher, finishing the week with a 1.6% rise, as property companies and food producers led gains. The transportation sector led declines. The Shanghai Composite Index ended 0.3% higher, the Shenzhen Composite Index rose 0.6%, and the ChiNext Price Index added 0.4%.