Australia shares rise on rate cut hopes, Unemployment higher than expected

Australian shares climbed on Thursday after weaker than expected jobs data raised expectations for a central bank rate cut

The S&P/ASX 200 index rose 0.01$ at time of writing, rising as much as 0.3% in previous trade.

It comes after Australian stocks rose on Wednesday after wage growth data showed Q1 stagnated, fuelling market expectations for Reserve Bank of Australia rate cut.

Weak jobs data

Unemployment rose according to the Australian Bureau of Statistics (ABS) data. April unemployment jumped to 5.2% from 5.9%, higher than expectations of 5.1%.

ABS Chief Economist Bruce Hockman said: ‘The unemployment rate remained at 5.1 per cent for a second month, 0.4 percentage points lower than the same time last year.’

ABS data showed, trend monthly employment increased by around 21,000 persons. Full-time employment increased by 15,000 persons and part-time employment increased by 6,000 persons.

‘The rise in employment over the past year was supported by an increase of around 260,000 full-time and 50,000 part-time employed persons,’ Mr Hockman said.

The trend monthly hours worked increased by 0.3% in April 2019 and by 2.8% over the past year.

Analysts say the jobs data supported expectations for a central bank rate cut, although broader weakness in regional markets capped gains.

Australian stocks

Energy stocks surged as much as 1.7%, on the back of rising oil prices.

Meanwhile, Origin Energy Ltd and Santos Ltd rose as much as 2.8% and 2.1%, with Woodside Petroleum Ltdput on 1.2%.

Miners also rose, boosted by gold stocks. Top gold miner Newcrest Mining rose 1% while Northern Star Resources gained 1.1% .

Financial stocks slumped, after Westpac Banking Corp tumbled as much as 4.7% to a one-month low as shares traded ex-dividend.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.