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FIVE at FIVE AU: ASX pares early gains after jobs data dash rate cut hopes

Published 17/10/2024, 04:08 pm
© Reuters FIVE at FIVE AU: ASX pares early gains after jobs data dash rate cut hopes
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The ASX 200 gained 0.86% to close at 8,335.9 points today. The local market jumped to a record high of 8,384.5 in early trading, yet the early gains were pared back after September’s jobs figures came in.

The Industrials, FInancials and Real Estate sectors each gained more than 1.65% while consumer Discretionary sector was also strong. Tech stocks, however, lost 1.1%.

Rate cut hopes “in tatters”

The resilience of the labour market was revealed today with the ABS releasing September jobs data that revealed the proportion of people in work or searching for a job rose to a record high.

The ABS reported that the economy added 64,100 jobs in September, beating the 25,000 economists expected. The unemployment rate held at 4.1%, below analysts’ estimates of 4.2% despite the participation rate increasing to a record high of 67.2%.

The jobs data only reinforces the belief that the RBA is unlikely to cut interest rates this year, with bets on a quarter-point cut at the central bank’s first meeting next year, in February.

IG Markets analyst Tony Sycamore said, “The RBA’s forecast for the unemployment rate is for it to rise to 4.3% by the December quarter. If the current trend in the jobs data continues, the unemployment rate appears more likely to find its way back to 4%, where it was in May.

"Today’s job numbers leave hopes of an RBA rate cut before year-end in tatters,” Sycamore said.

Forrests step down from Minderoo chair

Andrew Forrest and Nicola Forrest are set to step down as co-chairs of their philanthropic organisation, the Minderoo Foundation, six months after a restructure that saw the dismissal of 100 employees.

Andrew Forrest stated that his resignation would allow him to concentrate on his role as executive chairman of Fortescue (ASX:FMG) Metals Group, with a particular focus on the company’s ambitious emissions reduction plans.

Despite stepping down from their leadership positions, both will remain on the board of Minderoo, an organisation they founded more than two decades ago.

Prominent businessman and barrister Allan Myers has been appointed as the new chair of Minderoo.

Small cap gainers

Among gainers in small caps today were Provaris Energy Ltd (ASX:PV1, OTC:GBBLF), which was as much as 40.91% higher to $0.031, Solis Minerals Ltd (ASX:SLM, TSX-V:SLMN, OTCQB:SLMFF) up as much as 35.81% to $0.11, Aura Energy Ltd (ASX:AEE, AIM:AURA) as much as 16.13% higher to $.018, Ora Banda Mining Ltd (ASX:OBM) up to 14.93% higher to $0.77, Jindalee Lithium Ltd (ASX:JLL, OTCQX:JNDAF) up 8.7% to $0.25 and Predictive Discovery Ltd (ASX:ASX:PDI, OTC:PDIYF) up 6% to $0.265.

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