Australian Stock Market Report - Morning
US private sector payrolls (employment) rose by 64,000 in September, just short of expectations for a 74,000 gain in jobs. Overall, non-farm payrolls fell by 95,000, reflecting a withdrawal of census workers. The unemployment rate was unchanged at 9.6pct as were average hourly earnings.
IMF member countries have not found agreement on how to deal with currency imbalances.
European shares ended mixed on Friday, as investors weighed the latest US jobs data. Mining stocks rose, offsetting losses by banks. In London trade shares in Rio Tinto and BHP Billiton both rose by 1.8pct. The FTSEurofirst index ended flat, but while the UK FTSE fell by 0.1pct, the German Dax rose by 0.3pct.
US sharemarkets rose on Friday. In part the gains reflected relief that employment wasn´t weaker than forecast. But investors also remain hopeful the Federal Reserve will inject fresh stimulus into the economy. The Dow Jones rose by 58pts or 0.5pct with the S&P 500 up 0.6pct and the Nasdaq lifted by 18pts or 0.8pct. Over the week the Dow Jones rose by 1.6pct with the S&P 500 up 1.7pct and the Nasdaq up 1.3pct.
Yields on a raft of US treasuries fell to new lows on Friday on expectations that the Federal Reserve will need to embark on more quantitative easing (buying securities in exchange for pumping cash into the economy). US 2yr yields fell by 1pt to 0.35pct, US 5yr yields fell 2pts to 1.11pct but US 10yr yields rose 1pt to 2.395pct. Over the week US 2yr yields fell by 7pts and US 10yr yields fell by 12pts.
The Euro and commodity currencies rose against the greenback in US trade on Friday. The Euro traded between US$1.3850 to US$1.3970, ending US trade near US$1.3940 but lifting to US$1.3985 this morning. The Aussie dollar rose from lows near US97.20c to US98.70c, closing US trade near US98.55c but has lifted to US98.85c this morning. And the Japanese yen lifted from 82.45 yen per US dollar and JPY81.75, ending near JPY82.15.
US crude oil prices rose by over 1pct on Friday as commodity prices lifted in response to a weaker greenback. The Nymex crude oil contract rose by US99c or 1.2pct to US$82.66. London Brent crude rose by US60c to US$84.03 a barrel. Over the week Nymex oil rose by 1.3pct - the third weekly gain.
Base metal prices rose on the London Metal Exchange on Friday as the US dollar eased and equity markets lifted. Metals rose between 1.3-4.1pct. Over the week base metal prices were generally higher by 2.8-4.4pct with zinc doing best, but lead lost 0.4pct. And the gold price lifted in line with other commodities. The Comex gold futures price rose by US$10.30 an ounce to US$1,345.30. Gold rose by 2.1pct over the week. The CRB futures commodities index hit 2-year highs.
Ahead: In Australia, housing finance data is released. In the US the Columbus Day holiday is celebrated with bond markets closed and the stock market open.