A key leading index for the US economy hit a 36-week high on Friday. The Economic Cycle Research Institute leading index rose from 128.1 to 128.9 in the week to January 14.

European shares rose on Friday. A strong earnings report from General Electric encouraged investors as did news that Spain plans to part nationalise its savings banks. Mining stocks also rose in London in response to higher metal prices. Shares in BHP Billiton rose by 0.5pct and Rio Tinto edged 0.1pct higher. The FTSEurofirst index rose by 0.8pct, with the UK FTSE and German Dax both higher by 0.5pct.

[Get this delivered to your inbox for FREE. Subscribe to our daily Markets Newsletter.]

US sharemarkets were mixed in Friday. The Dow Jones lifted, driven by a 7.1pct lift in shares of General Electric following its better-than-expected earnings. The Dow closed at 2-1/2yr highs. But technology stocks fell, weighing on the Nasdaq. At the close of trade, the Dow Jones index was up 49pts or 0.4pct with the S&P 500 up 0.2pct but the Nasdaq was lower by 14.75pts or 0.6pct. Over the week the Dow Jones rose for the eighth straight week, up 0.7pct. But the S&P lost 0.8pct and Nasdaq fell 2.4pct.

US treasuries rose on Friday (yields lower) as investors squared positions ahead of the week-end. US 2yr yields fell by 2pts to 0.617pct and US 10yr yields fell by 5pts to 3.408pct. Over the week US 2yr yields rose by 3pts and US 10yr yields rose by 8pts.

The US dollar fell against major currencies in European and US trade on Friday as investors unwound safe-haven positions. The Euro rose from lows near US$1.3465 to US$1.3625 before ending US trade near US$1.3615. The Euro has slipped to US$1.3605 this morning. The Aussie dollar rose from lows around US98.40c to US99.15c, and closed US trade near US98.95c. And the Japanese yen rose from 82.95 yen per US dollar to near JPY82.50, and closed US trade at its highs. The Japanese yen is near JPY82.75 this morning.

US crude oil prices fell for a fourth straight session on Friday as investors fretted that crude stocks could rise further after the stock rebuild announced on Thursday. But Brent crude rose as investors became more confident about economic recovery in Europe. The Nymex crude oil contract fell by US48c to US$89.11 a barrel. But London Brent crude contract rose by US$1.02 to US$97.60 a barrel. Over the week Nymex crude fell by 2.7pct while Brent lost 1.1pct.

Base metal prices generally rose on the London Metal Exchange on Friday, the exception being zinc, down 0.5pct. Other metals rose 0.5-1.5pct. Over the week metals fell sharply, down between 2.1-7.4pct, but nickel rose 1.1pct. But the gold price fell again on Friday as investor demand for safe-haven assets continued to wane. The Comex gold futures price fell by US$5.50 an ounce to US$1,341.00. Gold fell for the third straight week, down 1.4pct.

Ahead: In Australia, data on producer prices is released. Woolworths releases quarterly sales figures. In the US, no major economic data is released.

More from IBT Markets:
Subscribe to get this delivered to your inbox daily
Follow us on Twitter.
Follow us on Facebook