Unemployment rises to 4.3pc in February; employment jumps 48,900
The Australian sharemarket hit a four-month low after fresh strikes on Middle Eastern energy infrastructure sent oil above $US110 a barrel, while a strong labour market kept a May interest rate hike on the table.
The S&P/ASX 200 Index dived 137.60 points, or by 1.6 per cent to 8503 at 12.13pm (AEDT), with three of the 11 sectors higher. A close at this level would be the lowest since late November.
Oil surged overnight after Iran and Israel traded strikes on key energy facilities in the Middle East, further roiling markets as the conflict stretches toward three weeks. Brent rose 3.7 per cent to $US111.53 in Asian trading, adding to a strong overnight surge.
It came as the Australian unemployment rate climbed more-than-expected to 4.3 per cent in February, while 48,900 jobs were created instead of 20,000 expected.
“Today’s jobs data reinforces the tightening bias, suggesting policy will need to stay restrictive for longer than markets may be hoping,” Global X senior product and investment strategist Marc Jocum said.
On the ASX, the energy sector jumped by nearly 3 per cent as Santos rose 3.2 per cent, Ampol 4.4 per cent, and Woodside Energy 5.7 per cent – the company also appointed former Anglo American chief executive Mark Cutifani as a director.
Direct attacks on Qatar’s largest gasfield boosted the prospect of coal miners. Whitehaven Coal gained 5.1 per cent, Yancoal 6.7 per cent and New Hope 3.1 per cent.
Materials were the weakest on the bourse as gold plunged overnight to around $US4830 an ounce as Federal Reserve chairman Jerome Powell warn higher energy prices would push up overall inflation. Northern Star tumbled 9.2 per cent, Evolution Mining 8.8 per cent and Newmont by 5.9 per cent.
The prospect of higher for longer interest rates in the world’s largest economy weighed on rate sensitive sectors of tech and real estate. WiseTech Global fell by 4.5 per cent, Xero by 2.4 per cent and Goodman Group shed 3.8 per cent.
Stocks in focus
In company news, Lynas Rare Earths slumped 2 per cent after the first production of samarium oxide at its Malaysian processing facility. It expands the group’s heavy rare earth product range.
Boss Energy dropped 5.5 per cent after it increased the uranium resource at its Gould’s Dam and Jason’s satellite deposits in South Australia as the company advances plans to bring the projects into production.
Orora retreated 2.7 per cent as it appointed Paul Victor as chief financial officer, effective November 4, replacing long-serving finance chief Shaun Hughes.
