While Wall Street traders took a break on Friday for an extended July 4 holiday, in Europe business was brisk with the Eurostoxx 50 up 0.8%.
Across the week, most markets made gains. China was an exception:
Eurozone: +2.7%MSCI (global index): +2.0%US: +1.8%Australia: +0.9%Japan: +0.6%China: -0.5%
While European shares hit a record high on Friday, US stocks remain below their peak as the rotation out of tech stocks rolls on.
“The US share market remains below its recent record high. This partly reflects another healthy rotation from tech to non-tech shares with the equal-weighted S&P 500 reaching new highs,” AMP’s Head of Investment Strategy Shane Oliver said.
With US-Iran ceasefire holding, oil prices were little changed on Friday on low trading volumes.
Brent crude futures: +0.2% to $US71.94/barrelWTI crude futures: +0.1% to $US68.78/barrel
At those levels, oil prices are still a bit higher than they were when hostilities broke out in February.
Tanker shipments through the Strait of Hormuz are recovering but still well down on pre-war levels.
“The US-Iran dealmaking process remains fragile but continues for now, as the question of Strait of Hormuz tolls and administration remains contentious,” Citi analysts wrote in a weekend note.
“We expect the MoU (memorandum of understanding) to hold, not because trust has suddenly emerged, but because the incentives to break are poor for both sides.”
The US dollar edged down further after Thursday’s weak jobs data undermined the case for the Fed to raise rates.
That in turn led the Australian dollar higher, back towards 69 US cents.
Iron ore was higher on Friday, but slipped through the week, while copper and gold were supported by the US dollar’s fall.