CMC Markets Weekly Report

The Dow Jones Index finished Friday up 55.48 points, or 0.47%, at 11,787.38, while the SPI was up 11 points, or 0.23%, to close at 1,293.24 in overnight trading.

US stocks rose on Friday after encouraging results from JPMorgan Chase & Co, but offsetting lukewarm economic data. The S&P Midcap 400 index surpassed its all-time intraday record, rising 0.4 percent to hit 928.05. The index includes companies ranging from $750 million to $3.3 billion in size. Dow component Intel Corp fell 0.99 percent to $21.08, a day after it posted a better-than-expected quarterly profit and forecast strong revenue for the coming quarter.

US crude oil February futures ended almost flat to settle at $91.54 a barrel. Crude oil was earlier pressured and fell to $90.10 after China lifted lenders' reserve rate requirements by 50 basis points in its ongoing effort to tame inflation. China's move was the seventh increase since early 2010, prompting concern that China's appetite for buying oil and other commodities could be curbed.

The US dollar strengthened against the euro and a basket of currencies on the China reserve rate move, adding another factor pressuring U.S. crude prices. However, it recovered from its losses after US reported its industrial production rose more than expected in December.

Economic news releases in Australia this week will include the TD-MI Inflation (Dec) gauge on Monday, WMI Consumer Confidence (Jan) on Tuesday and Import & Export Price Index (Q4) on Friday.

It is quiet on the Dividend front with only three small cap Australian companies going ex-dividend this week. These are Merchant House (MHI), Mirrabooka Investments (MIR) and Euroz Limited (EZL).

The US markets will be closed on Monday night due to the Martin Luther King national holiday. US data available this week includes Empire Manufacturing (Jan) on Tuesday. On Wednesday, Building Permits (Dec) and Housing Starts (Dec). On Thursday we will see Existing Home Sales (Dec), Leading Indicators (Dec) and the Philadelphia Fed Index.

In the UK they will announce Rightmove House Prices (Jan) on Monday. On Tuesday, DCLG House prices (Nov) and Consumer Price Index (Dec). And on Wednesday we will get data on ILO Unemployment (Nov).

There are two New Zealand data releases this week, these include the Consumer Price Index (Q4) on Thursday and Retail Sales (Nov) on Friday.

China announces Real GDP (Q4) on Friday.