US payrolls rose by 151,000 in October, well ahead of expectations for jobs growth of 60,000. The September payrolls were revised to show a fall of just 41,000 (previously a decline of 95,000. The unemployment rate remained steady at 9.6pct. US private sector payrolls rose by 159,000. Mining and services industries added the bulk of the job gains, while the manufacturing sector recorded modest job losses.

European shares rallied to six-month closing highs on Friday. Mining stocks received a strong boost as copper prices neared near record highs. The gains were capped as banking stocks eased following earning results from Royal Bank of Scotland (down 4.5pct). The FTSEurofirst index rose by 0.4pct, while the UK FTSE gained 0.2pct and the German Dax rose by 0.3pct.

US sharemarkets rose for a fifth straight week following modest gains on Friday. The strong employment data supported investor sentiment however after strong gains investors booked profits. A weaker than expected earnings result from Kraft (down 2.2pct) weighed on the Dow. Financial stocks outperformed with the S&P Financial Index advancing 2.1pct, as speculation about increased dividends supported the banks.

The Dow Jones closed higher by 9pts or 0.1pct with the S&P 500 up 0.4pct and the Nasdaq up by 2pts or 0.1pct. Over the week the Dow and Nasdaq both lifted by 2.9pct, while the S&P 500 rose 3.6pct.

US treasuries fell (yields higher) on Friday following a surprise jump in non-farm payrolls. US 2yr yields rose by 3pts to 0.371pct and US 10yr yields rose by 5pts to 2.539pct. Over the week US 2yr yields fell by 3pts and US 10yr yields fell by 7pts.

The US dollar rallied against a basket of currencies following the improved jobs data. The Euro fell from highs near US$1.4225 to US$1.4025. The Aussie dollar fell from near US$1.0180 to US$1.0085 closing US trade near US$1.0150.
And the Japanese yen is currently around 81.30 yen per US dollar after trading from JPY80.60 to JPY81.40.

US crude oil prices hit two year highs on Friday, posting a fifth straight session of gains. The stronger than expected jobs data saw the oil price touch US$87.43 a barrel, before easing modestly. The Nymex crude oil contract rose by US36c or 0.4pct to US$86.85. Oil rose by US$5.42 over the week.

Base metal prices were mixed on the London Metal Exchange on Friday. The copper price rose by 0.7pct and posted its biggest weekly gain in more than three years supported by the weaker US dollar and Fed stimulus. Lead led the declines down 0.9pct. And the Comex gold futures price rose by US$14.60 an ounce to US$1,397.70.

Ahead: In Australia, ANZ Job ads is released. In the US no economic data is expected.

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