Stocks paused after the rally earlier in the week but were higher on the week.
United States
US stocks fluctuated around the unchanged mark Friday. The Dow Jones industrials were up 0.1 percent while both the Nasdaq and S&P retreated 0.1 percent. Despite the lackluster performance on the day, the Dow was up 2.0 percent while the Nasdaq and S&P added 1.5 percent on the week.
Herbalife advanced after the Federal Trade Commission decided not to classify it as a pyramid scheme as an investor contended. The company did agree, however, to pay $200 million to resolve accusations that it had deceived consumers. Wells Fargo was lower after bank reported that second quarter earnings fell. Trading was subdued in Europe after a man drove a truck into crowds celebrating Bastille Day along the beachfront of Nice. Travel-related stocks including Royal Caribbean and Delta Air Lines were down. Citigroup reported better than expected earnings, despite a 14 percent drop in profits when compared with a year ago. Wells Fargo said its second-quarter profit fell as it continued to deal with low interest rates that sap lenders’ profitability.
June consumer prices were up 1 percent from a year ago but up 2.3 percent when excluding food and energy. June retail sales rose a robust 2.7 percent from a year earlier. Consumer spending accounts for about two-third of US GDP, much higher than in many other developed countries. July preliminary University of Michigan consumer sentiment deteriorated to a reading of 89.5 compared to the final June reading of 93.5.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was up US$3.40 to US$1,327.00. Copper futures were down 0.4 percent to US$2.23. WTI spot crude was up 0.27 US cents to US$45.95. Dated Brent spot crude was up 24 US cents to US$47.61. The US dollar was up against the yen, euro, pound and the Canadian and Australian dollars. However, it was unchanged against the Swiss franc. The Dollar Index was up 0.6 percent. The yields on both the US Treasury 30 year bond and 10 year note were up 2 basis points to 2.27 percent and 1.55 percent respectively.
Europe
Shares were mostly lower Friday with travel and leisure stocks were under heavy selling pressure after a truck drove into a crowd watching Bastille Day fireworks in the southern French city of Nice, killing at least 84 people and leaving 100 more injured. The FTSE edged up 0.2 percent while the CAC and SMI lost 0.3 percent and 0.2 percent respectively. The DAX was virtually unchanged (down 1.4 points). On the week, the FTSE added 2.6 percent, the CAC advanced 2.8 percent, the DAX was up 1.4 percent and the SMI was 1.5 percent higher.
Accor declined along with Air France KLM and Aéroports de Paris. In London, easyJet, Thomas Cook, British Airways’ owner International Consolidated Airlines Group, InterContinental Hotels and Carnival retreated. Swatch dropped in Zurich after a profit warning while Richemont was lower. BP and Royal Dutch Shell declined. Miners BHP Billiton, Anglo American, Antofagasta and Rio Tinto retreated. However, Royal Bank of England, Barclays and Lloyds all advanced.
Eurozone June final harmonized index of consumer prices edged up 0.1 percent from a year ago after declining 0.1 percent in May. This was the first rise in the HICP in five months. The euro area trade surplus declined in May as the fall in exports exceeded the pace of decrease in imports..
Asia Pacific
Asian stocks finished mostly higher on Friday, as better than expected Chinese economic data helped outweigh news of the truck attack in Nice, France. Markets also took the Bank of England’s decision to keep rates on hold in their stride.
The Shanghai Composite was virtually unchanged (up 0.28 point) while the Hang Seng added 0.5 percent. For the week, the indices were up 2.2 percent and 5.3 percent respectively. June’s industrial output was up a more than expected 6.2 percent on the year while retail sales were up 10.6 percent. Second quarter gross domestic product was up 6.7 percent on the year for a second quarter.
The Nikkei added 0.7 percent on the day and soared 9.2 percent for the week. Fast Retailing jumped after the clothing group reported strong May-quarter earnings. Nintendo climbed to extend recent gains since the release of its Pokemon GO augmented reality game. Shares of messaging app operator Line surged in its Japan trading debut after jumping in their US market debut.
Both the S&P/ASX and All Ordinaries were up 0.3 percent. For the week the former added 3.8 percent and the latter, 3.6 percent. The big four banks advanced on expectations that the Reserve Bank of Australia could provide more stimulus when it meets on August 2 to review monetary policy.
The Kospi was up 0.4 percent and 2.8 percent for the week. The Sensex lost 0.4 percent Friday but added 2.6 percent on the week.
Global Stock Markets

Looking forward

Central Bank activities

July 21

Eurozone

European Central Bank Monetary Policy Announcement

The following indicators will be released this week…

Europe

July 19

Germany

ZEW Business Survey (July)

UK

Consumer Price Index (June)

Producer Price Index (June)

July 20

Germany

Producer Price Index (June)

UK

Labour Market Report (June)

July 21

UK

Retail Sales (June)

July 22

Eurozone

Manufacturing, Services & Composite PMI (July, flash)

Germany

Manufacturing, Services & Composite PMI (July, flash)

France

Manufacturing, Services & Composite PMI (July, flash)

UK

Manufacturing PMI (July, flash)

Asia/Pacific

July 22

Japan

Manufacturing PMI (July, flash)

Americas

July 19

United States

Housing Starts (June)

July 21

United States

Initial Unemployment Claims (week ending prior Saturday)

Philadelphia Fed Survey (July)

Existing Home Sales (June)

Leading Indicators (June)

July 22

Canada

Consumer Price Index (June)

Retail Sales (May)

United States

Manufacturing PMI (July, flash)

*Note — all releases are listed in local time.

Source: Fidelity

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