US markets rally on Friday

US markets rallied on a thin session to end the week on a better note, however the markets snapped a two week winning streak as continued European sovereign debt issues and the US Debt ceiling debate concerned the market. A decision must be made by August 2nd to avoid a US default.

S&P and Moody’s have placed the US on a credit watch as US politicians continue to wrangle over the raising of the US debt ceiling. Both ratings agencies have noted that they require evidence that shows the US is putting in place a viable plan to stabiles their debt obligations over the medium term

US Financials were one of the worst performing sectors on Friday’s session despite JPM and CitiGroup posting strong quarterly results. Both banks fell 0.9% and 1.6% respectively

Energy stocks were stronger with CVX, COP and XOM up 1.5%, 1.1% and 0.9% respectively as oil prices were stronger. Chesapeake spiked higher by 9.1% 

Toy maker Mattel Q2 income jumped 56%, which push the stock up 1.87% 

Dow +42.61 pts, NASDAQ +27.13 pts and S&P500 +7.27 pts 

USD was little changed against the EUR as bank stress tests concluded in Europe. More banks passed than expected but did little to dent market scepticism as debt concerns permeate through Spain and Italy. AUD was softer as major Aussie banks move to a negative interest rate forecast

Gold rallied to a new record on US credit concerns, oil rallied on short supplies