Market Open: ASX Set to Slide as Wall Street Falls on Strong US Jobs Data
Key Takeaways
- •The US economy added 162,000 jobs in August, beating forecasts, while the unemployment rate rose to 4.1%, weighing on US equities.
- •The Dow Jones fell more than 260 points, with the S&P 500 and Nasdaq also closing lower, ahead of an expected weaker ASX open.
- •ABS labour account data showed Australian filled jobs rose 0.7% in the June quarter to 16.3 million, the fifth consecutive quarterly increase.
- •Secondary jobs grew 11.7% over the year while main jobs grew 1.9%, with part-time employment outpacing full-time growth.
- •The Australian dollar was buying US$0.720, with iron ore up 0.15% to $99.57 a tonne while Brent crude fell 0.91% to $95.405 a barrel.
The ASX is expected to open lower this morning, continuing the roller-coaster ride that has characterised the local market in recent sessions.
Australian shares are likely to follow Wall Street, which fell before the weekend after a stronger-than-expected August jobs report reignited fears of further US Federal Reserve interest rate hikes. US employment figures are among the most closely watched inputs for Fed policymakers, and resilient labour market readings are typically read as evidence the economy can withstand tighter monetary policy for longer — a dynamic that weighed on equities heading into the weekend.
The US economy added 162,000 jobs in August, beating forecasts, while the unemployment rate ticked up to 4.1%. The Dow Jones tumbled more than 260 points, and the S&P 500 and Nasdaq also closed lower.
On the domestic data front, Australian jobs rose by 110,700 to 16.3 million in the June quarter, according to labour account figures released by the Australian Bureau of Statistics (ABS). The quarterly labour account series provides a broader picture of total filled jobs than the monthly labour force survey, capturing both main and secondary jobs held by workers.
"Filled jobs rose 0.7 per cent in the June quarter, the fifth quarterly rise in a row. This was driven by a 0.4 per cent rise in main jobs and a 4.6 per cent rise in secondary jobs," said Sean Crick, ABS head of labour statistics.
"The rise in secondary jobs coincided with recent labour force data showing stronger growth in part-time employment of 1.0 per cent compared to full-time employment of 0.3 per cent. This resulted in a 0.3 per cent fall in average hours worked per job," he said.
Through the year, secondary jobs grew 11.7 per cent (122,000 jobs) and main jobs grew 1.9 per cent (288,400 jobs).
Company news
- ROX Resources (ASX: RXL) reported strong progress with Youanmi gold mine construction.
- Focus Minerals (ASX: FML) says it hit impressive intersections at Green Light.
- Yari Resources (ASX: YAR) has revealed multiple product pathways at the Arcadia coal project.
- Indiana Resources (ASX: IDA) is spinning the bit at Company Well.
- Manhattan Gold Corporation (ASX: MHC) has hit wide gold intercepts at Jaws.
Currency and commodities
In forex, the Australian dollar is buying US$0.720.
In commodities, priced in US dollars:
- Iron ore was up 0.15 per cent to $99.57 per tonne in Singapore today.
- Brent crude was down 0.91 per cent to $95.405 per barrel.
- Gold was selling at $4,432.56.
- US natural gas futures were down 1.48 per cent to $2.9310 per gigajoule.
That's HotCopper's Market Open, I'm Colin Sandell-Hay – happy trading.
The material provided in this article is for information only and should not be treated as investment advice. Readers are encouraged to conduct their own research and consult a certified financial advisor before making any investment decisions.
