• In US economic data, non-farm payrolls (jobs) rose by 390,000 in May (survey: 325,000). The unemployment rate was steady at 3.6% (survey: 3.5%). And hourly earnings rose by 0.3% (survey: +0.4%) to be up 5.2% on a year ago. The ISM services index fell from 57.1 to 55.9 in May (survey: 56.4). The S&P Global services index fell from 55.6 to 53.4 in May (survey: 53.5).
• European sharemarkets fell on Friday. Autos led declines, down 1.6%, with technology down 1.2%. Shares in French auto parts supplier Faurecia slid 6.8% after it launched a 705 million euro (US$758 million) capital raising to fund its acquisition of German rival Hella. The pan-European STOXX 600 index fell by 0.3% and lost 0.9% on the week. The German Dax index fell by 0.2%. The UK market was closed for a public holiday.
• US sharemarkets gave back most of the previous day’s gain on Friday. A bigger-than-expected lift in jobs suggested the Federal Reserve will maintain its aggressive rate policy. Shares in Tesla fell 9.2% on reports that the electric vehicle maker may cut 10% of jobs. Shares in Apple lost 3.9% on a broker report. The Dow Jones index fell by 349 points or 1.1%. The S&P 500 index fell by 1.6%. And the Nasdaq index lost 304 points or 2.5%. Over the week the Dow fell by 0.9%; S&P 500 lost 1.2%; and the Nasdaq lost 1%.
• US treasuries fell on Friday (yields higher). US 10-year yields rose by 3 points to near 2.94%. And US 2-year yields rose by 2 points to near 2.66%. Over the week US 10-year yields rose by 15 points and US 2-year yields rose by 7 points.
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• Major currencies fell against a stronger US dollar in European and US trade. The Euro fell from highs near US$1.0760 to lows near US$1.0705 and was near US$1.0720 at the US close. The Aussie dollar eased from US72.65 cents to lows near US72.00 cents and was near US72.05 cents at the US close. And the Japanese yen eased from levels near 129.80 yen per US dollar to JPY131.00 and was near JPY130.85 at the US close.
• Global oil prices rose by around 1.7% on Friday. Investors believe that the planned lift in OPEC+ production will not be sufficient to boost global supplies if China continues to ease Covid restrictions. The Brent crude price rose by US$2.11 or 1.8% to US$119.72 a barrel. And the US Nymex crude price rose by US$2.00 or 1.7% to US$118.87 a barrel. Over the week Brent crude rose by 0.2%. Nymex crude rose by 3.3%.
• Base metal prices were unavailable on Friday due to a holiday in the UK. Over the week aluminium fell 5.1% and nickel fell 0.6%. Other metals rose by 0.3-2.5% with tin up the most.
• The gold futures price fell by US$21.20 or 1.1% to US$1,850.20 an ounce. Spot gold was trading near US$1,851 an ounce at the US close. Over the week gold fell US$1.10 or 0.1%. The iron ore futures price rose by US$2.20 or 1.5% to US$144.40 a tonne. Over the week iron ore rose US$10.99 or 8.2%.
Ahead: ANZ job ads data is released with the monthly inflation gauge. No major economic data is expected in the US.
Originally Published by CommSec