US retail sales rose by 0.6pct in September, exceeding forecasts for a gain of 0.4pct. Excluding autos, retail sales were in line with expectations with a gain of 0.4pct. US consumer prices rose just 0.1pct in September while the core rate was unchanged. US consumer sentiment eased from 68.2 to 67.9 in October.

US Federal Reserve chairman Ben Bernanke has signalled more quantitative easing, saying, ´´There would appear -- all else being equal -- to be a case for further action.´´ Meanwhile Chicago Fed president Charles Evans says U.S. is in a "bona fide liquidity trap".

European shares were mixed on Friday. The FTSEurofirst index fell by 0.04pct, but while the UK FTSE fell by 0.4pct, the German Dax rose by 0.6pct.

US sharemarkets ended mixed on Friday with financial stocks down and technology stocks generally firmer. Shares in Bank of America fell 4.9pct but Microsoft gained 1.2pct and Google soared 11.2pct. The Dow Jones fell by almost 32pts or 0.3pct but the S&P 500 was up 0.2pct and the Nasdaq lifted by 33pts or 1.4pct. Over the week the Dow rose 0.5pct and Nasdaq lifted 2.8pct.

US longer-term treasuries fell on Friday (yields higher) after Ben Bernanke signalled that the Fed would attempt to boost growth and inflation by monetary stimulus. US 2yr yields fell by 2pts to 0.36pct, and US 10yr yields rose 6pts to 2.57pct. Over the week US 2yr yields rose by 1.5pts and US 10yr yields rose by 16.5pts.

Major currencies spiked higher against the greenback as Ben Bernanke commenced his speech but then eased over the US session on Friday. The Aussie dollar hit parity with the greenback, rising to US$1.0003 at 11.17pm on Friday night before easing to USUS98.70c and ending US trade at US99.05c. The Aussie is near US99.40c this morning. The Euro eased from highs of US$1.4145 to US$1.3950, ending US trade near US$1.3970. The Euro has lifted to US$1.40 this morning. And the Japanese yen eased from highs of 80.95 yen per US dollar to JPY81.45, ending US trade near its weakest levels over the session. The yen stands at JPY81.35 this morning.

US crude oil prices fell on Friday as the US dollar rebounded and OPEC left oil quotas unchanged. The Nymex crude oil contract fell by US$1.44 or 1.7pct to US$81.25. Oil lost 1.7pct over the week.

  • Base metal prices were mixed on the London Metal Exchange on Friday. Aluminium lost 1.5pct and nickel lost 1.1pct but lead rose by 0.6pct. Over the week base metal prices were also mixed. Lead rose 6.9pct and zinc rose 5.9pct but nickel and aluminium eased 1.5-2.0pct. And the gold price eased as the US dollar recovered. The Comex gold futures price ended lower by US$5.60 an ounce to US$1,372. Gold rose 2pct over the week.

Ahead: In Australia, car sales data is released. In the US data on industrial production and capital flows are released.