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FIVE at FIVE AU: ASX buoyant as February jobs figures come in strong

Published 21/03/2024, 04:03 pm
© Reuters FIVE at FIVE AU: ASX buoyant as February jobs figures come in strong
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The ASX is looking stronger today, climbing 89.10 points or 1.16% to 7,784.90, crossing above its 20-day moving average.

The top-performing stocks today at around 2:30pm were Webjet Ltd and Bellevue Gold Ltd, up 8.17% and 7.88% respectively.

Over the last five days, the index has gained 0.92% and is currently 0.87% off of its 52-week high.

From a sector perspective, it was a sea of green this afternoon, with Financials and Real Estate and Consumer Discretionary the healthiest shade of the colour, rising 1.82%, 1.25% and 1.55% respectively.

The only sectors in the red were Health Care, down 0.10% and Utilities, down 0.37%.

Unemployment down

The big news today was that the unemployment rate fell to 3.7% from 4.1% last month.

Australia's economy added 116,500 jobs in February following a small gain in January and well above the 40,000 gain economists had expected for the month.

The underutilisation rate, combining the unemployment and underemployment rates, fell 0.5 percentage points to 10.3%, 0.9 percentage points higher than its recent low of 9.4% in November 2022 but 3.6 percentage points lower than before the pandemic.

Participation increased by 0.1 percentage point to 66.7% after being revised lower last month.

“The ABS noted that the solid job growth in February followed a larger than usual number of people in December who had a job that they were waiting to start or to return to,” wrote IG’s Tony Sycamore this morning.

“This translated into a larger than-usual flow of people into employment in February, even more so than in February last year.

“With seasonal issues, again evident in the data, it will cause some hesitation in reading too much into the hot headline number.

“That said, it is hard to escape the fact that the unemployment rate, which is probably the cleanest read, has fallen back to 3.7%, where it was six months ago.

“The market will seek further insights into the economy's trajectory and inflation from the following key data ahead of the next RBA Board meeting on May 7.”

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