In US economic data, non-farm payrolls (employment) rose by 130,000 in August (forecast +160,000). The unemployment rate was steady at 3.7% as expected. Average hourly earnings rose by 0.4% (forecast +0.3%) to be up 3.2% on the year (forecast +3.0%). US Federal Reserve chair, Jerome Powell, said that the Federal Reserve will "act as appropriate" to sustain the US economic expansion. The Fed chair also downplayed the prospect of a global or US recession.
US share markets were mixed on Friday, as investors digested the latest news. The Dow Jones rose by 69 points or 0.3%. The S&P500 index rose by 0.1%, but the Nasdaq lost almost 14 points or 0.2%. Over the week the Dow rose 1.5% with S&P 500 and Nasdaq both up 1.8%. US treasury yields were flat on Friday. US 2-year yields were near 1.54% and US 10-year yields were near 1.56%. Over the week US 2-year yields rose by 3.5 points with 10-year yields up by 5.5 points.
European share markets rose on Friday with Chinese stimulus offsetting softer US jobs data and German industrial orders. The People's Bank of China said it would cut the reserve requirement ratio by 50 basis points (bps) for all banks, with an additional cut of 100 bps for some qualified banks. The pan-European STOXX600 index rose by 0.3% and the German Dax gained 0.5% with the UK FTSE up by 0.2%. In London trade, shares of Rio Tinto rose by 0.4% and BHP rose by 0.5%.
Major currencies were mixed against the US dollar in US and European trade compared with the end of Asian trade. The Euro held broadly between US$1.1020 and US$1.1055 and was near US$1.1020 in late US trade. The Aussie dollar rose from US68.15 cents to US68.60 cents, ending US trade near US68.35 cents. The Japanese yen lifted from 107.08 yen per US dollar to JPY106.62 and was near JPY106.80 in late US trade.
Global oil prices rose by up to 1% on Friday. Prices had eased after the US job data, but lifted after comments from the US Federal Reserve chair. Supporting prices was data showing the number of oil rigs operating in the US fell by 4 to 738 in the past week. The Brent crude price rose by US59 cents or 1.0% to US$61.54 a barrel. And the US Nymex price rose by US22 cents or 0.4% to US$56.52 a barrel. Over the week Brent rose by 1.8% and Nymex rose by 2.6%.
Base metal prices were mixed on the London Metals Exchange on Friday. Zinc, copper and tin fell up to 0.9% and other metals rose up to 1.4% with lead up the most. Over the week metals rose by between 2.3% (aluminium) and 6.5% (tin). But nickel eased by 1.4%.
The gold futures price fell by US$10.00 or 0.7% to US$1,515.50 an ounce. The spot gold price was trading near US$1,507 an ounce in late US trade. Over the week gold fell by US$4.35 an ounce or 0.3%. Iron ore fell by US$2.10 or 2.3% to US$88.10 a tonne. Over the week iron ore rose by US$3.70 or 4.4%.
Australian lending and US consumer credit data are issued.
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