US non-farm payrolls (employment) fell by 125,000 in June, above forecasts for a decline of 100,000 workers. Excluding the government sector, payrolls rose by 83,000. The unemployment rate fell from 9.7pct to 9.5pct and hourly earnings fell by 0.1pct.

European shares rose slightly on Friday, but finished off the day´s highs after the US jobs report. Banks led the gains. The FTSEurofirst index rose by 0.1pct with the UK FTSE up 0.7pct but the German Dax lost 0.4pct.

US sharemarkets fell on Friday on investor disappointment with the latest employment report. The Dow Jones fell by 46 points or 0.5pct with the S&P 500 also down by 0.5pct, and the Nasdaq was down by almost 10 points or 0.5pct. Over the week the Dow Jones index fell by 4.5pct with the S&P 500 down 5.0pct and Nasdaq lost 5.9pct.

US treasuries fell on Friday (yields higher) with some analysts saying the jobs report wasn´t as bad as feared. But volumes were thin ahead of the US long weekend. US 2yr yields were largely unchanged at 0.63pct with US 10yr yields up 3pts to 2.98pct. Over the week US 2yr yields were lower by 2pts while US 10yr yields fell by 13pts.

Major currencies were mixed in European and US trade on Friday as traders squared positions ahead of the US long weekend. The Euro rose from lows near US$1.2485 to US$1.2610, ending the US session near US$1.2550. The Aussie dollar fell from highs near US84.90c to US84.00c, ending the US session near US84.25c. And the Japanese yen edged from 88.10 yen per US dollar to JPY87.35, ending US trade near JPY87.80.

US crude oil prices fell again on Friday on continued worries about the health of the global economy. Production resumed in the Gulf of Mexico after being stopped as a precaution ahead of Hurricane Alex. The Nymex crude oil contract fell by US81c or 1.1pct to US$72.14. London Brent crude fell by US69c to US$71.65 a barrel. Nymex oil fell by 8.5pct over the week after rising by 4.6pct over the week.

Base metal prices were generally higher on the London Metal Exchange on Friday as investors shopped around for bargains. Metals rose 0.6-2.4pct but nickel fell by 1.1pct. Over the week base metal prices fell sharply. Copper fell by 5.4pct with zinc down 5pct and nickel lost 4.8pct. The gold price also rose on Friday in response to bargain-hunting and book-squaring. Comex gold rose by US$1.00 to US$1,207.70. Over the week gold fell by 3.9pct after rising 2.3pct the previous week.

Ahead: In Australia, data on car sales and job ads are released while the Performance of Services and monthly inflation gauge are issued. In the US, financial markets are closed for a public holiday.

Provided by Commsec.com.au