The US economy grew at a 1.6pct annual pace in the June quarter, down from the original estimate of 2.4pct. Economists had tipped a result near 1.3pct. US consumer sentiment rose from 67.8 to 68.9 in August, short of forecasts near 69.6.

US Federal Reserve chairman Ben Bernanke has indicated that the Federal Reserve is prepared to do what it takes to boost economic growth: ´´The committee is prepared to provide additional monetary accommodation through unconventional measures if it proves necessary, especially if the outlook were to deteriorate significantly.´´

European shares rose on Friday as investors embraced defensive sectors. The FTSEurofirst index rose by 0.6pct while the UK FTSE lifted by 0.9pct and the German Dax gained 0.7pct.

US sharemarkets rose on Friday with investors encouraged by comments from the Federal Reserve chairman and positive economic data. The Dow Jones rose by almost 165pts or 1.7pct with the S&P 500 up 1.7pct and the Nasdaq up 35pts or 1.7pct. Over the week the Dow Jones lost 0.6pct with the S&P 500 down 0.7pct and the Nasdaq was lower by 1.2pct.

US treasuries slumped on Friday (yields higher) after Fed chief Ben Bernanke failed to flag fresh buying of government bonds. US 2yr yields rose by 3pts to 0.56pct and US 10yr yields rose by 16pts to near 2.65pct. Over the week US 2yr yields rose by 5pts and US 10yr yields rose by 3pts.

The Euro and commodity currencies rose against the greenback in US trade as investors moved away from safe-haven assets. The Euro held between US$1.2680 to US$1.2775, ending US trade near US$1.2730. The Euro has lifted to US$1.2765 this morning after Chinese authorities indicated that they would maintain ´´appropriately loose´´ economic policy settings The Aussie dollar lifted from US88.60c to US89.95c, ending US trade near the day´s highs. This morning the Aussie pushed through US90c to US90.25c . And the Japanese yen eased from 84.45 yen per US dollar to JPY85.45, ending US trade near its weakest levels.

US crude oil prices rose for a third day on Friday, boosted in part by short-covering. The Nymex crude oil contract rose by US$1.81 or 2.5pct to US$75.17. London Brent crude rose by US$1.02 to US$76.04 a barrel. Over the week Nymex oil rose by 2.3pct.

Base metal prices rose on the London Metal Exchange on Friday in response to short-covering ahead of a holiday weekend, lifting between 1.6-3.2pct. Over the week base metal prices generally rose, up between 0.3-2.9pct, with copper doing best, although nickel lost 2.3pct. And the Comex gold price rose by just US20c an ounce to US$1,237.90. Gold finished higher for the fourth week, up 0.7pct.

Ahead: In Australia, data on profits, inventories and sales are released. In the US personal income and spending data are due for release.