US consumer sentiment eased from 68.9 to 66.6 in September, short of forecasts centred on a result near 70.0. US consumer prices rose by 0.3pct in September but the core measure (excludes food and energy) was unchanged in the month. The CPI is 1.1pct higher than a year ago (core up 0.9pct). US household wealth also eased 2.8pct in the June quarter. And the leading index from the Economic Cycle Research Institute hit a 14-week high last week.

European shares ended lower on Friday, as investors weighed up unfounded rumours on Irish debt and worse-than-expected US consumer confidence data. The FTSEurofirst index fell by 0.3pct with the UK FTSE and German Dax both lower by 0.6pct.

US sharemarkets finished with modest gains on Friday with technology stocks leading the way. Shares in Oracle rose by 8.4pct after the software company reporting earnings which beat market forecasts. The Dow Jones rose by 13pts or 0.1pct to a one-month high with the S&P 500 up 0.1pct and the Nasdaq lifted by 12.4pts or 0.5pct. Over the week the Dow Jones gained 1.4pct with the S&P 500 up 1.5pct and the Nasdaq was higher by 3.3pct.

US treasuries rose on Friday (yields lower) with rumours about Ireland´s financial stability and lower US consumer confidence causing investors to embrace safe-haven assets. US 2yr yields fell by 1pt to 0.46pct and US 10yr yields fell by 2pts to near 2.76pct. Over the week US 2yr yields fell by 11pts and US 10yr yields fell by 6pts.

The Euro and commodity currencies eased against the greenback in European and US trade on Friday as traders booked profits. The Euro eased from highs near US$1.3155 to US$1.3025, ending US trade near US$1.3050. The Euro rose 2.5pct over the week. The Aussie dollar eased from highs near US94.70c to US93.55c, closing US trade at its lows. And the Japanese yen held between 85.65 yen per US dollar and JPY85.90, ending US trade near JPY85.75.

US crude oil prices fell on Friday as traders fretted that weaker consumer sentiment could translate to lower demand for oil. A firmer greenback also weighed on prices. The Nymex crude oil contract fell by US91c or 1.2pct to US$73.66. London Brent crude fell by US27c to US$78.21 a barrel. Over the week Nymex oil fell by 3.7pct after rising by 2.5pct the previous week.

Base metal prices were little changed on the London Metal Exchange on Friday. Metals rose between 0.1-0.7pct but nickel lost 0.2pct. Over the week base metal prices were higher. Aluminium rose 3.9pct with both nickel and copper up 3.2pct. And the Comex gold price rose by US$3.70 an ounce to fresh record highs of US$1,277.50 in response to seasonal demand and investor demand for safe-haven assets. Gold rose by 2.5pct over the week.

Ahead: In Australia, the Reserve Bank Governor delivers a speech. In the US the NAHB market index is released.