Australian Stock Market Report – Morning July 7, 2014

4th of July celebrations — Lower Manhattan is seen as the "Macy's 4th of July" fireworks explode over the East River in New York July 4, 2014. Hotdog eating champs, backyard picnickers and small-town parade lovers pressed on with July Fourth celebrations, some with less sizzle after wet weather on the U.S. East Coast postponed fireworks shows. REUTERS/Eric Thayer (UNITED STATES - Tags: CITYSCAPE ANNIVERSARY SOCIETY)

Lower Manhattan is seen as the "Macy's 4th of July" fireworks explode over the East River in New York July 4, 2014. Hotdog eating champs, backyard picnickers and small-town parade lovers pressed on with July Fourth celebrations, some with less sizzle after wet weather on the U.S. East Coast postponed fireworks shows. REUTERS/Eric Thayer (UNITED STATES - Tags: CITYSCAPE ANNIVERSARY SOCIETY)

Morning Report
(07:30 AEST)

US financial markets were closed on Friday for Independence Day.

European shares were generally lower on Friday. Shares in Austrian Bank, Erste, fell by 16.4% after it revealed it would record a loss in 2014 due to bad debts in Eastern Europe. Vienna´s benchmark ATX share index fell by 3.0%. The FTSEurofirst 300 index fell by 0.3% and the German Dax lost 0.2% while the UK FTSE rose by less than a point and therefore by less than 0.1%. Australia´s major miners finished mixed in London trade with shares in BHP Billiton up by 0.6% while Rio Tinto fell by less than 0.3%.

US sharemarkets were closed on Friday but over the week the Dow Jones rose by 1.3% with the S&P 500 index up by 1.25% and the Nasdaq was up by 2.0%.

The US government bond market was closed on Friday. Over the week US 2 year yields were up 5 points to 0.51% while US 10 year yields lifted by 10 points to 2.64%.

Major currencies were mixed against the US dollar in European and North American trade on Friday. The Euro eased from near US$1.3605 to lows near US$1.3585, and closed US trade around US$1.3595. The Aussie dollar lifted from lows near US93.45c to highs near US93.65c and ended US trade around session highs. And the Japanese yen eased from 101.97 yen per US dollar to JPY102.10, ending North American trade near the weakest levels.

World oil prices fell modestly in thin trade on Friday. While firm global economic data points to stronger oil demand ahead, there is also the prospect of more oil supply flowing from Libya. Brent crude fell by US36c or 0.3% to US$110.64 a barrel and the US Nymex price closed lower by US29c or 0.3% to US$103.77 a barrel. Over the week Brent fell by US$2.66 a barrel or 2.3% while Nymex fell by US$1.97 or 1.9%.

Base metal prices fell by up to 2.4% on the London Metal Exchange on Friday with nickel leading the declines. Over the week base metals rose up to 2.7% with copper leading the way. The Comex gold futures price edged up by US50c an ounce or less than 0.1% to US$1,321.00 per ounce. Over the week gold rose by US$1.00. Iron ore was unchanged on Friday at US$96.50 a tonne but over the week the price rose by US$1.60.

Ahead: In Australia, data on tourist arrivals and departures is released together with job advertisements. In the US, the Employment Trends report is released.

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