MORNING REPORT (6.30am AEDT) US non-farm payrolls (employment) rose by 120,000 in November, in line with market expectations. Private payrolls rose by 140,000, the jobless rate fell from 9.0pct to a 2-1/2 year low of 8.6pct and average earnings fell by 0.1pct.

Euro zone producer prices rose by 0.1pct in October, boosting the case for a European Central Bank rate cut this week.

European shares rose again on Friday to conclude the strongest weekly gain since late 2008. The French President and German Chancellor say they will jointly advance proposals for greater fiscal integration in Europe this week. The FTSEurofirst index rose by 1.0pct to finish 8.5pct higher over the week. The UK FTSE was up by 1.2pct while the German Dax gained 0.7pct.

US shares ended flat on Friday as traders booked profits ahead of the weekend. Financial stocks led gains with shares in JP Morgan Chase up 6.1pct. The Dow Jones fell by 0.6pts or less than 0.1pct with the S&P 500 down 0.3pts, again less than 0.1pct, while the Nasdaq rose by 0.73pts or less than 0.1pct. Over the week the Dow Jones rose by 7.0pct, while the S&P 500 lifted by 7.4pct and the Nasdaq gained 7.6pct. Markets recorded their best weekly gains since March 2009.

US treasuries rose on Friday (yields lower) as traders booked profits in the equities market and embraced bargains in the bond market at the end of the week. US 2yr yields fell by 1pt to 0.254pct and US 10yr yields fell by 7pts to 2.03pct. Over the week US 2yr yields fell by 2pts and US 10yr yields rose by 7pts.

The Euro and commodity currencies rose in European trade but gave back gains over the US session on Friday. The Euro rose from near US$1.3450 to US$1.3535, eased to US$1.3365 and ended US trade near US$1.3385. The Aussie dollar rose from lows around US102.05c to US103.15c, and ended US trade at US102.10c. And the Japanese yen eased from JPY77.75 yen per US dollar to JPY78.05, ending US trade near JPY78.00.

World crude oil prices rose on Friday to end higher over the week. US employment data encouraged investors while traders focussed on tensions between western nations and Iran. Gasoline prices were supported by early closure of a Sunoco refinery in Pennsylvania. Nymex crude oil rose by US76c or 0.8pct to US$100.96 a barrel and London Brent crude rose by US95c to US$109.94 a barrel. Over the week Nymex crude rose by 4.3pct while Brent rose by 3.3pct.

Base metal prices were mixed on the London Metal Exchange on Friday. Nickel soared 6pct from 2-year lows while other metals made modest gains except aluminium and tin. Over the week base metals rose between 4.5-9.1pct but tin lost 3.7pct. And the gold price rose in thin trade with the Comex February gold price up by US$11.50 an ounce or 0.7pct to US$1,751.30. Over the week gold rose by US$65.60 or 3.9pct.

Ahead: In Australia, ANZ job ads is released together with the Bureau of Statistics Business Indicators, Performance of Services index and monthly inflation gauge. In the US, the ISM services index, and factory orders data are released.