Australian Stock Market Report – Morning July 8, 2014

Unemployment — Toyota representative Brandi Hall (L) assists a U.S. military veteran applicant at a hiring fair for veteran job seekers in Washington in this file photo taken April 9, 2014. The number of Americans filing new claims for unemployment benefits unexpectedly rose last week, but not enough to change views the labor market was strengthening. REUTERS/Gary Cameron/Files (UNITED STATES - Tags: MILITARY BUSINESS EMPLOYMENT)

Toyota representative Brandi Hall (L) assists a U.S. military veteran applicant at a hiring fair for veteran job seekers in Washington in this file photo taken April 9, 2014. The number of Americans filing new claims for unemployment benefits unexpectedly rose last week, but not enough to change views the labor market was strengthening. REUTERS/Gary Cameron/Files (UNITED STATES - Tags: MILITARY BUSINESS EMPLOYMENT)

Morning Report
(06:05 AEST)

In US economic data, the Employment Trends index rose from 119.03 to 119.62 in June. In European economic data, German production fell by 1.8% in May, the biggest reduction in two years and well below market expectations.

European shares fell on Monday in response to the weak German economic data. The FTSEurofirst 300 index fell by 0.9%, the German Dax lost 1.0% while the UK FTSE fell by 0.6%. Australia´s major miners finished lower in London trade with shares in BHP Billiton down by 0.8% while Rio Tinto lost 0.7%.

US sharemarkets eased on Monday with some investors choosing to book profits ahead of the start of earnings season. There was little in the way or corporate or economic news to cause traders or investors to adopt new positions. The Dow Jones fell by 44 points or 0.3% with the S&P 500 index down by 0.4% and the Nasdaq lost 34 points or 0.8%.

US treasury prices rose on Monday (yields lower) with traders and investors taking profits in the sharemarket and putting money to work in government bonds. US 2 year yields were flat at 0.516% while US 10 year yields fell by 3 points to 2.617%.

Major currencies rose against the US dollar on Monday. The Euro rose from lows near U$1.3575 to highs near US$1.3610, closing US trade near US$1.3605. The Aussie dollar rose from lows near US93.50c to highs near US93.75c and ended US trade near US93.70c. And the Japanese yen lifted from 102.13 yen per US dollar to JPY101.78, ending US trade near JPY101.83.

World oil prices eased on Monday with all manner of fears about supply disruptions failing to be realised into actual reductions in production or exports from key producers. Also lower German production data suggested weaker oil demand lay ahead. Brent crude fell by US40c or 0.4% to US$110.24 a barrel and the US Nymex price closed lower by US43c or 0.4% to US$103.63 a barrel.

Base metal prices were mixed on the London Metal Exchange on Monday. Zinc lifted most, up 1.1%, and lead rose 0.5%. But other metals fell up to 0.5%. The Comex gold futures quote fell by US$3.60 or 0.3% to US$1,317.00 per ounce. Iron ore fell by US60c a tonne or 0.6% to US$95.90 a tonne.

Ahead: In Australia, the NAB business survey is released. In the US, data on weekly chain store sales is released together with consumer credit figures. Alcoa releases earnings results after the bell on Tuesday.

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