CMC Markets Weekly Report

U.S. stocks turned mostly higher on Friday, with the S&P 500 and the Dow Jones Industrial Average closing at records, after the government reported an unexpected slowdown in consumer spending in April.

The Dow Jones Industrial Average added 18.43 points, or 0.1 per cent, to finish at an all-time high at 16,717.17 as did the S&P500 climbing 3.54 points, or 0.2 per cent, to close at 1,923.57. After an initial rise, the Nasdaq dropped 5.33 points, or 0.1 per cent, to 4,242.62.

In economic news, the Reuters/University of Michigan survey of consumer sentiment came in at 81.9 in May, lower than the consensus estimate of 82.4.

The figures from the Commerce Department had household purchases falling 0.1 per cent last month in the first decline in a year, following a revised 1 per cent rise the prior month, the strongest since 2009. Incomes increased 0.3 per cent, as expected

The Chicago Purchasing Managers Index hit 65.5 in May, versus expectations of 61.

In Commodity markets, oil prices fell, but signs of stronger US petrol demand and tensions in Ukraine provided support, according to analysts. The US benchmark, West Texas Intermediate (WTI) for delivery in July, shed 87 cents to $US102.71 a barrel. Brent North Sea crude for July fell 56 cents to stand at $US109.41 a barrel in London deals.

Copper prices edged lower as data showed US consumer spending fell in April. Copper for July delivery, the most actively traded contract, fell 0.7 per cent to settle at $US3.1235 per pound on the Comex division of the New York Mercantile Exchange.

Nickel prices bucked the trend finishing the week up 1.8 per cent.

The Australian dollar is trading above 93 US cents, boosted by better than expected Chinese manufacturing figures. At 0700 AEST on Monday, the local currency was trading at 93.10 US cents, up from 93.07 cents on Friday.

Today is expected to be a busy day for the Australian dollar with the release of data that helps to make up gross domestic product. The RP Data-Rismark home price index, TD Securities inflation gauge, Business Indicators, and the Performance of Manufacturing index is released.

In the US, the ISM manufacturing index is released with construction spending.

The market on Friday closed lower, with the benchmark S&P/ASX200 index dropping 15 points to 5,504.5 and the broader All Ordinaries index shed 13.9 points to 5,485.3.