Australian Stock Market Report – Morning November 7, 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)

* In the US, jobless claim fell by 10,000 to 278,000 last week. The Labour Department also reported that hourly compensation increased at a 2.3 per cent rate in the September quarter. Labour productivity rose at a 0.3 per cent rate in the September quarter after a decline of 0.5 per cent in the June quarter.

* European shares rose on Thursday, after the European Central Bank President Draghi said the bank's governing council was unanimous in its commitment to using additional unconventional measures if needed. Draghi said the ECB aims to increase the size of its balance sheet towards the levels of 2012. The FTSEurofirst 300 index rose by 0.2%, the UK FTSE also gained 0.2% and the German Dax lifted by 0.7%. In London trade shares in BHP Billiton were up 0.5% with Rio Tinto down by 0.7%.

* US shares rose in a volatile trading session on Thursday. Investors were buoyed by the ongoing stimulus commentary from the ECB although the weakness in the oil price hurt energy stocks. With just over an hour of trade left the Dow Jones was up by just over 54 points or 0.3% and the S&P 500 index was up by 0.2% while the Nasdaq was higher by 7 points or 0.2%.

* US long-dated treasury prices fell on Thursday (yields higher) following the ECB's dovish stance. But traders did remain cautious ahead of the official jobs data on Friday. US 2 year yields were flat near 0.542% while US 10 year yields rose 3 points at 2.376%.

* Major currencies were weaker against the US dollar in European and US trade on Thursday. The Euro fell from highs near US$1.2535 to lows near US$1.2380, and was near US$1.2385 in late US trade.

The Aussie dollar fell from highs near US86.25c to a 4-year low around US85.60c, and was near US85.75c in late US trade. The Japanese yen eased from 114.15 yen per US dollar to JPY115.00 and was near JPY114.95 in late US trade.

* World oil prices fell on Thursday as worries about high supplies pressured prices. The strong US dollar also added to the weakness. Brent crude fell by US60c or 0.7% to US$82.35 a barrel. US Nymex crude price fell by US$1.05 or 1.3% to US$77.63 a barrel.

* Base metal prices were higher on London Metal Exchange on Thursday. Tin (up 1.7%) and nickel (1.2%) lead the gains, while other metals rose between 0.2%-0.9%. Gold slumped to fresh 4- year lows, falling for the seventh straight session on Thursday with Comex gold futures down by US$3.10 an ounce or 0.3% to US$1,142.60 per ounce. Iron ore fell by US40c on Thursday or 0.5% to a 5-year low of US$75.60 a tonne.

Ahead: In Australia, the Reserve bank releases the Statement of Monetary Police. In the US, no farm payrolls data is released.

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