Stocks eke out modest gains

The ASX has ended broadly flat after stronger than expected jobs data reinforced expectations of a rate rise next year.

Pedestrians are seen reflected at the Australian Securities Exchange (ASX) in Sydney. (AAP Image/Mick Tsikas)

The local sharemarket has ended flat after stronger than expected employment data reinforced expectations of a rate rise next year.

The benchmark S&P/ASX200 was up 5.6 points, or 0.10 per cent, to 5,896.1 points, while the broader All Ordinaries index was up 4.9 points, or 0.08 per cent, to 5,959.8 points.

Australia’s unemployment rate fell to a four-an-a-half-year low of 5.5 per cent, beating out market expectations it would remain steady at 5.6 per cent.

“The unemployment rate is now a touch below the RBA’s August forecast track and forward indicators suggest the RBA will need to make a downward adjustment to their unemployment rate forecasts in the upcoming November Statement on Monetary Policy,” said National Australia Bank Economist Tapas Strickland.

The market tapped a five-month intraday high of 5,910.2 at around the time the employment report was released.

It comes after the market put on 4.5 per cent over the last 10 sessions, the strongest gains since the US election.

In financials, NAB was unchanged at $32.38. Commonwealth Bank edged up 0.47 per cent to $78.74. Westpac gained 0.57 per cent to $33.45 and ANZ added on 0.82 per cent to $30.60.

BHP shed 2.25 per cent to $26.56, Rio Tinto dropped 2.54 per cent to $69.12 and Fortescue gave back 1.22 per cent to $4.85.

Elsewhere, Bellamy’s has clawed itself back to the level which preceeded it’s late-2016 plunge which occured after it warned the market of potential change in Chinese regulation, with shares soaring 7.02 per cent today to $12.20.

Crown Resorts tumbled 2.85 per cent to $10.92, after MP Andrew Wilkie accused the company of money laundering and pokie machine manipulation sparking a negative reaction yesterday. Credit Suisse analysts said the revelations are low risk, saying that casino regulation is not generally enacted in Federal Parliament.

“Casinos in Australia are licensed and regulated by the states. Therefore, this Parliamentary stand was political fanfare as opposed to an argument for some new casino regulations bill,” the bank’s gaming analysts said.

Santos gained 1.18 per cent to $4.28 after it narrowed it production guidance and sales targets after a strong quarter.

Woodside Petroleum lost 1.18 per cent to $29.25 after it softened its production target following a decline in output over the last quarter.

The Australian dollar spiked from US78.40 cents to US78.68c after the unemployment data was released but has since dropped back to US78.5c in late trade.