The Australian sharemarket fell to its lowest in three weeks after a surprisingly strong jobs report dented hopes of an early interest rate cut by the Reserve Bank.

The S&P/ASX 200 closed down 0.3 per cent, or 23.3 points, to 8330.3, on course to post a 1 per cent loss for the week. The All Ordinaries also eased 0.3 per cent.

The sharemarket initially opened higher, tracking a strong rally on Wall Street after US inflation data bolstered bets for a third consecutive rate cut by the Federal Reserve next week. That also helped bitcoin pop back above $US100,000.

But the gains were quickly erased after local economic data showed Australia’s unemployment rate dropped below 4 per cent in November.

Traders promptly tempered bets for an early 2025 rate cut from the RBA just days after the central bank’s dovish stance opened the door to an easing in February. Money markets imply a 55 per cent chance of a rate reduction in February, down from 70 per cent before the data.

‘Too soon’

Kris Bernie, a portfolio manager at Kapstream Capital, said the jobs report allowed the Reserve Bank time to gain sufficient confidence that underlying inflation was falling. “February may be too soon for the start of the coming easing cycle,” he added.

On the ASX, nine of the 11 sectors closed in the red with property tumbling the most. Tech stocks and financials edged higher

The mining giants were mixed in a choppy session as investors awaited the outcome of Beijing’s annual Central Economic Work Conference later this week with hopes of more details on the country’s stimulus plan.

Rio Tinto rose 0.3 per cent to $124.15, BHP Group eased 0.5 per cent to $41.79 and Fortescue rallied 0.6 per cent to $20.22. The big banks were subdued with Commonwealth Bank flat at $157.52.

Stocks in focus

Much of the price action on the ASX, however, came from infrastructure services providers Downer EDI and Ventia after the Australian Competition and Consumer Commission launched proceedings against both for alleged price-fixing.

Ventia plunged nearly 23 per cent to $3.33, the worst one-day drop in its history. Downer EDI lost 6 per cent to $5.37, the biggest daily fall in more than a year.

Industrial minerals company Syrah Resources also had a tough session, tumbling 28 per cent to 19¢ after declaring force majeure at its Balama Graphite site in Mozambique due to nationwide protests following a disputed general election.

Metal producer Capstone Copper gained 1.6 per cent to $10.75 after Citi initiated coverage with a “buy” rating, citing “positive earnings momentum”.

Pilbara Minerals jumped 4 per cent to $2.36 after chief executive Dale Henderson became the latest director to load up on holdings in the embattled lithium producer.

HMC Capital jumped 3.9 per cent to $12.15 after Morgan Stanley upgraded its price target on optimism about the asset manager’s platform and fee growth.

And, struggling wealth giant Platinum dived more than 20 per cent to an all-time low of 63¢ as investors buying today will no longer be eligible for the bumper 20¢ dividend it announced earlier in the year.