Stocks posted a down week with trade tensions weighing on performance. The S&P 500 was down 0.5% and the Dow declined 0.7% for the week. Abroad, Japan dropped 1.9% and Europe fell 1.7% for the week. The 10-year Treasury yield, after hitting its lowest level in several years, ended the week at 1.73% down from 1.86% the previous week. During the week gold climbed above $1,500 a troy ounce for the first time in six years but finished the week at $1,497.
The Treasury labeled China a currency manipulator after China let its currency depreciate. China let the yuan fall below the 7 yuan to dollar level for the first time since 2008. China also suspended purchases of US agricultural products in an escalation of trade tensions.
Central banks in India, New Zealand and Thailand cut their benchmark interest rates more than expected.
German industrial production in June was much lower than expected.
Japan posted a 2Q GDP of 1.8%, far above expectations.
China set the onshore level of the yuan at a less aggrieve level then economists were expecting. A move to not escalate tensions.
France posted a surprise acceleration in growth based on a business survey.
The UK’s GDP contracted 0.2% in the second quarter.