Howd’y, America!

In US economic data, non-farm payrolls (jobs) rose by 134,000 (survey: +185,000) in September. Payrolls were revised up by 87,000 in the prior two months. The unemployment rate fell by 0.2% to a 48-year low of 3.7% (survey: 3.8%). Annual average hourly earnings fell by 0.1% to 2.8% (survey: 2.8%). The trade deficit rose by US$3.2bn to -US$53.2bn (survey: -US$53.5bn) in August.

US share markets were lower on Friday, weighed down by rising US Treasury yields following the release of a generally solid September jobs report. The Dow Jones index fell by 325 points during the session, pulled lower by shares of Intel (-2.3%) and Caterpillar (-2.2%). The Dow Jones eventually finished down by 180 points or 0.7%. The S&P500 index was down by 0.6% and the Nasdaq index fell 91 points or 1.2%. For the week, the Nasdaq fell by 3.2%, its biggest drop since the week ended March 23. The Dow fell just 0.04% and the S&P500 fell by 1.0%.    

 US treasuries fell (yields higher) on Friday following the jobs report release. The 10-year yield rose by 4 points to 3.2328% after hitting a 7-year peak at 3.248% during trading. The 30-year yield reached a 4-year high at 3.424% and the US 2-year yield rose by 1 point to 2.8891%. Over the week, US 10-year yields rose by 17 points and US 2-year yields rose by 6 points. 

The US Treasury market is closed today for Columbus Day.

Global oil prices were little changed on Friday. US drillers cut two oil rigs in the week to October 5, according to Baker Hughes. Brent crude fell by US42 cents or 0.5% to US$84.16 a barrel, but the US Nymex price rose by US1 cent or 0.01% to US$74.34 a barrel. Over the week, Brent crude rose by US$1.44 or 1.7% and the Nymex rose by US$1.09 or 1.5%.

Bonjour, Europe

European share markets fell on Friday, led lower by shares of Denmark's Danske Bank (-6.2%) after a rating cut by broker Credit Suisse. Danske is facing a US criminal investigation into a €200 billion money laundering scandal at its Estonian branch. The pan-European STOXX600 fell by 0.8%, the German Dax was down 1.1% and the UK FTSE fell by 1.4%. In London trade, shares of Rio Tinto fell by 4.0% and BHP was down by 3.9%.

Zao shang hao, Asia

Major currencies were mixed against the US dollar in US and European trade compared with the Asian close. The Euro rose from lows near US$1.1484 to highs around US$1.1535 and was near US$1.1521 in late US trade. The Aussie dollar fell from highs near US70.82 cents to lows near US70.43 cents and was near US70.52 cents in late US trade. The Japanese yen strengthened from 114.04 yen per US dollar to JPY113.55 and was near JPY113.70 in late US trade.  

The China Caixin services purchasing managers index is scheduled.

Top of the morning, London

Base metal prices were mixed on the London Metals Exchange on Friday. Copper (-1.9%) fell on concerns that lifting interest rates could weigh on global growth and reduce demand for the "red metal". Nickel (+1.1%) was the strongest performer. Aluminium (+3.9%) rose over the week on Brazilian supply concerns, but lead (-2.3%) and copper (-1.5%) fell by the most.

Have a great day, Australia!