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As on : 16-Jan-2025

Market Commentary - Foreign Markets
16-Jan-2025 15:45

Australian markets rally on unemployment data

Australian markets rallied as data showed the unemployment rate rose slightly in December, increasing the chances of an interest rate cut in February. The benchmark S&P/ASX 200 climbed 1.38 percent to 8,327, led by banks and technology stocks.

The broader All Ordinaries index settled 1.33 percent higher at 8,569.10. Top lender Commonwealth Bank of Australia rose nearly 3 percent after five straight sessions of losses.

The unemployment rate in Australia came in at a seasonally adjusted 4.0 percent in December, the Australian Bureau of Statistics said on Thursday - in line with expectations and up from 3.9 percent in November.

The Australian economy added 56,300 jobs last month, blowing away expectations for an increase of 14,500 following the downwardly revised gain of 28,200 in November (originally 35,600 jobs).

Full-time employment was down 23,700 jobs, while part-time employment jumped by 80,000.

The participation rate was 67.1 percent, beating forecasts for 67.0 percent - which would have been unchanged.

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