Weekly Market Outlook
A stronger-than-expected jobs report on Friday was a good end to a week in which stocks were dragged lower by a rout in commodities. Stocks closed modestly higher amid falling oil prices and a rising dollar as investors were encouraged by the surprisingly strong report on April jobs growth.
The Dow Jones Industrial Average fell 171.73 points this week, or 1.34%, to 12,638.81. On Friday, the Dow gained 54.64 points, or 0.4%, after rising more than 170 points earlier in the session.
Buyers returned to gold futures, sending gold up US$20.90 to US$1495.40/oz and silver up 2.4% to US$35.62/oz. The Aussie should have fallen as well but the RBA’s quarterly statement on monetary policy upgraded the central banks inflation expectations to assume 3.0% core inflation will be reached by 2011 end, suggesting another rate hike is imminent. The Aussie dollar backed the first half and jumped 1.3% to US$1.0712.