The S&P/ASX 200 extended its decline on Thursday as more evidence of a robust labour market fuelled concerns about aggressive interest rate rises.
The Australian sharemarket reversed a strong start to Thursday’s session after a better-than-expected jobs report stoked concerns that the Reserve Bank will need to front-load interest rate increases to cool the red-hot economy.P/ASX 200 shed 0.1 per cent, or 9.9 points, to 6591.1, its lowest level since December 2020. The broader All Ordinaries Index edged just 0.03 per cent lower to 6783.7.
Commonwealth Bank economist Belinda Allen said the fall in underemployment was the “standout feature” of the May numbers. “As a relative late-comer to the hiking game, the RBA will not be too comforted by today’s figures,” said Robert Carnell, regional head of research Asia-Pacific at ING. “Like many other central banks are finding currently, the arguments for stepping up the pace of tightening are gaining credibility.”National Australia Bank economists said there was nothing in the labour report to dissuade the RBA from raising rates by another half percentage point in July and August.Local shares whipsawed into the afternoon, dipping into the red with about an hour left of trading amid a sell-off that accelerated into the close.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ASX LIVE: ASX to drop at the open, Australian dollar extends lossesAustralian shares are poised to open lower. The Dow and S&P 500 fell again. Tech bounce lifted Nasdaq. $A slid below US68.75¢. Follow updates here.
Read more »
ASX LIVE: ASX to rise, Wall St rallies on Fed’s resolveAustralian shares are set to open higher, bolstered by a broad rally in New York. Oil, iron ore ease. $A surges 2 per cent. Follow updates here.
Read more »
ASX enters correction plunging 3.6pc as billions wiped from marketStubbornly high US inflation and fed fears have triggered an indiscriminate sell-off in Australian shares as markets reel from their worst day since March 2020.
Read more »
ASX to tumble for a second session, US yields rise higherAustralian shares are on track to shed another 1 per cent at the open, as the S&P 500 continues to reset lower. $A has a US68¢ handle. Bitcoin steadier.
Read more »