Stocks fell Friday as GOP negotiators halted ongoing debt ceiling negotiations, stoking doubt of a deal being reached soon. However, the S&P 500 notched its best week since March.
The Dow Jones Industrial Average dropped 109.28 points, or 0.33 per cent, to 33,426.63. The S&P 500 slipped 0.14 per cent to 4,191.98. The Nasdaq Composite slid 0.24 per cent to 12,657.90.
All three major averages capped the week with gains. The S&P 500 rose 1.65 per cent, and the Nasdaq Composite gained 3.04 per cent. It was the best weekly performance since March for both indexes. The Dow added 0.38 per cent.
A chunk of those gains came Thursday, as traders mounted bets that a US debt ceiling deal could be reached. Comments from House Speaker Kevin McCarthy Thursday seemed to suggest a potential deal could come as soon as next week.
However, stocks turned lower Friday after GOP negotiators walked out of a debt ceiling meeting, with Rep. Garret Graves, saying the White House team is “unreasonable,” according to NBC News.
Friday’s losses were kept in check, however, after Federal Reserve Chairman Jerome Powell said interest rates may not have to rise as much as expected to quell inflation.
The prices of European gas prices are in a normal range for the first time since the Energy crisis. The prices have fallen as Europe looks to replenish its stocks since the Russian squeeze.
Texas oil giant, Exxon Mobil is diversifying its operations by purchasing drilling rights in Arkansas to produce lithium, a mineral used in batteries for electric vehicles and electronics. This move indicates Exxon’s recognition of the potential decline in demand for gasoline and a return to an industry it helped pioneer years ago.
On the lithium front, resources giant POSCO claims that it is 40 per cent cheaper to construct a lithium processing plant in South Korea compared to Australia, citing clear cost advantages in Asia. The decision to build the plant in South Korea comes as South Korean government agencies provide significant loans towards its construction, which will process Australian lithium ore into higher value lithium hydroxide for battery production.
On Friday, US sectors were mixed. Energy was the best performer, whilst Consumer Discretionary was the worst.
The SPI futures are pointing to a 0.2 per cent fall.
One Australian dollar at 7:10 AM is buying 66.47 US cents.
Iron ore futures are pointing to a 0.3 per cent fall.
Gold gained 1.11 per cent. Silver added 1.81 per cent. Copper rose 1.15 per cent and oil fell 0.43 per cent.
Figures around the globe
Across the Atlantic, European markets closed higher. London’s FTSE added 0.19 per cent, Frankfurt gained 0.69 per cent while Paris closed 0.61 per cent higher.
In Asian markets, Tokyo’s Nikkei gained 0.77 per cent, Hong Kong’s Hang Seng lost 1.40 per cent while China’s Shanghai Composite closed 0.42 per cent lower.
On Friday, the Australian sharemarket closed 0.59 per cent higher at 7280.
EZZ Life Science (ASX:EZZ) is paying 0.98 cents fully franked
Kelly Partners Group (ASX:KPG) is paying 0.3993 cents fully franked
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
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