How’dy USA

In US data, non-farm payrolls rose by 224,000 jobs (consensus: 160,000) in June. The unemployment rate lifted from 3.6% to 3.7% (consensus: 3.6%). Average hourly earnings rose by 0.2% (consensus: 0.3%) to 3.1% over the year to June.

US share markets fell from record highs on Friday after the release of solid US jobs data. Traders sharply scaled-back their expectations of an interest rate cut of half a percentage point by the US central bank at its next policy meeting on July 30-31. The Dow Jones fell by almost 44 points or 0.2% after being down by 232 points earlier in the session. The S&P500 was also down by 0.2%. And the Nasdaq fell by 8 points or 0.1%. The Dow and S&P 500 both rose more than 1% over the week while the Nasdaq gained nearly 2%.

US treasuries fell (yields higher) on Friday due to a robust US jobs report. The US economy created more jobs than expected in June, suggesting that the US Federal Reserve will not aggressively cut interest rates later this month. US 2-year yields rose by 11 points to near 1.87% and US 10-year yields rose by 9 points to near 2.04%. Over the week US 2-year yields rose by 13 points and US 10-year yields rose by 4 points.

Bonjour Europe

European share markets fell on Friday. Disappointing German factory orders data pushed industrial shares down by 1.9%. The pan-European STOXX600 index was down 0.7%, capping weekly gains at 1.4%. Shares of Swedish tech giant Hexagon fell by 10.9% after the company warned of a drop in second-quarter sales due to global trade tensions. The German Dax fell by 0.5% and the UK FTSE was down by 0.7%. In London trade, shares of Rio Tinto fell by 3.8% and BHP shares fell by 2.8%.

Hello World!

Major currencies were weaker against the US dollar in US and European trade compared with the end of Asian trade. The Euro fell from near US$1.1280 to lows near US$1.1207 and was near US$1.1222 in late US trade. The Aussie dollar fell from highs near US70.22 cents to lows near US69.57 cents and was near US69.65 cents in late US trade. The Japanese yen eased from near 107.85 yen per US dollar to JPY108.62 and was near JPY108.45 in late US trade.

Global oil prices rose on Friday. US-Iranian tensions and an extension to output cuts by OPEC and its allies boosted prices. The Brent crude price rose by US93 cents or 1.5% to US$64.23 a barrel. And the US Nymex price rose by US17 cents or 0.3% to US$57.51 a barrel. But Brent recorded a 3.5% weekly loss and the Nymex shed 1.6% - the first weekly loss since mid-June.

Base metal prices were mixed on the London Metal Exchange (LME) on Friday. Zinc declined by 1.3% as spreads weakened, signalling increased supply. Lead (-0.4%) also fell, but nickel was up by 1.2%. Copper (-1.5%) posted its biggest weekly loss since May on demand concerns.

The gold futures price fell by US$20.80 an ounce or 1.5% to US$1,400.10 an ounce. The spot gold price was trading near US$1,399 an ounce in late US trade. Over the week gold fell by US$13.60 an ounce or 1%. Iron ore fell by US$8.05 or 6.6% to US$114.25 a tonne as the China Iron & Steel Association urged the Chinese government to maintain order in the steel market. Over the week iron ore fell by US$3.70 a tonne or 3.1%.

G’day Australia

In Australia, job advertisements data is issued. US consumer credit data is also due.