Stocks track higher, jobs eyed

The local market has jumped half a percentage point, with investors reassured over US rates and local jobs.

The Australian sharemarket continues to track higher on expectations of a flatter rates trajectory in the US and amid a stable unemployment print in Australia.

At 12.05pm (AEST), the benchmark S&P/ASX 200 index was 25.4 points higher, or 0.49 per cent, to 5172.5, while the broader All Ordinaries index had rallied 27.1 points, or 0.52 per cent, to 5257.5.

The bourse is on track for its first positive session in five days, with investors welcoming another 5.7 per cent unemployment print from the Australian Bureau of Statistics. However, the ABS found motor vehicle sales fell 1.1 per cent for May, following a 2.5 per cent decline in April.

Ahead of the session, the US Federal Reserve concluded its monthly meeting, lowering its rate rise outlook as a greater number of the central bank’s officials adopted forecasted only one rate rise this year. Wall Street lost 0.2 per cent overnight on the announcement.

IG market analysts Angus Nicholson said the 4.8 per cent yield on offer in the benchmark was “one reason” why the ASX was outperforming other markets in wake of the dovish Fed comments.

In equities news, APN News and Media was off 0.78 per cent to 63.5c after its shareholders approved a plan to demerge its New Zealand business while Primary Health Care had dipped 0.52 per cent to $3.80 as it announced plans to divest Queensland and NSW pathology assets which were being subject to a consumer watchdog investigation.

The market was driven forward by a surge in Crown Resorts stock after James Packer moved to split his gaming empire in two. The casino operator soared 14.7 per cent to $12.915.

While Crown threatened to be the biggest story of the morning, it was quickly overtaken by news the ACCC would take Medibank Private to court for allegedly misleading its customers in the lead-up to its $5.7 billion IPO in 2014.

At noon, Medibank shares had dived 6.98 per cent to $2.865, serving as the high-profile laggard for the session.

Materials and consumer discretionary stocks led the gains, up 1.3 per cent and 1.8 per cent respectively. BHP Billiton was the best of the big two miners, lifting 1.46 per cent to $18.08 while in the consumer discretionary sector, which was also being buoyed by Crown’s jump, JB Hi-Fi was 2.17 per cent higher at $23.315 and Myer had lifted 1.76 per cent to $1.135.

Financial stocks were up 0.2 per cent with ANZ the best of the big four banks, improving 0.7 per cent to $23.36.

Energy stocks retreated 0.2 per cent on global benchmark Brent crude oil’s 1.7 per cent fall overnight. Woodside Petroleum was up 0.69 per cent to $26.28 while Santos had slipped 0.9 per cent to $4.38.

Elsewhere, the big two supermarkets were mixed while Telstra had jumped 1.42 per cent to $5.355.

The Australian dollar, meanwhile, had edged below US74c at noon on the ABS updates after the unit had started the morning changing hands at US74.07c.

The Australian sharemarket yesterday fell about 1 per cent on rising ‘Brexit’ concerns, after having fallen 2 per cent on Tuesday.