Australian share market dips amid hotter-than-expected jobs increase

The Aussie share market sank on Thursday with traders seemingly unphased with the release of fresh employment data.

The Australian share market dipped lower on Thursday amid the release of a hotter-than-expected jobs report that showed the economy added a bumper 55,000 new jobs in October.

The S&P/ASX 200 slumped 0.7 per cent, or 47.5 points, to reach 7,058.4 at the closing bell with the benchmark weighed down by losses in energy, tech and health stocks. After falling a similar amount, the All Ordinaries closed at 7,296.5.

Meanwhile, the Australian dollar jumped to a three-month high overnight, but has since retreated, buying US63.7.

Eight of 11 industry sectors finished in the red, with utilities stocks the strongest performers, rising 0.6 per cent.

Investors appeared unphased by a stronger-than-expected employment data, released by the Bureau of Statistics, which showed an uptick in the jobless rate to 3.7 per cent in October.

Investors appeared unphased by a hotter-than-expected jobs report. Picture: NCA NewsWire / Nikki Short

However, Commonwealth Bank economists said the smaller rise in hours worked coupled with the increase in part-time work was indicative of a softening in the jobs market.

“The 1.7 per cent annual lift in hours worked compares with the 3 per cent annual increase in employment,” CBA economist Stephen Wu said.

“The stronger pace of jobs growth lines up with the relative strength in part‑time jobs and also the faster pick‑up in underemployment.”

The fall in the energy sector tracked further falls in the global oil price after a fresh report showed US Crude stockpiles had risen amid record output. Brent Crude slumped almost 1 per cent to $US80.40.

Santos dropped 1.9 per cent to $7.06, Beach Energy slid 4.1 per cent to $1.52, and Woodside lost 0.8 per cent to $32.10.

A tougher outlook in the Chinese infant formula market failed to weigh down A2 Milk shares. Picture: supplied.

In company news, shares in AMP hit their lowest level since March 2022 after the financial services firm announced that net interest margins in its banking division would continue to be under pressure in the 2023 financial year. Shares were 15.8 per cent lower to 86.

GrainCorp finished 1.8 per cent higher to $7.55 after the agribusiness company posted its full-year results. Earnings before interest, taxes, depreciation, and amortisation were $565 million, beating consensus forecasts of $543 million.

The firm also announced an on-market share buyback worth $50 million.

A2 Milk climbed 0.5 per cent to $3.82. The increase came despite a warning from the company’s chief David Bortolussi that business in China was proving more challenging as its infant formula market shrinks.

Sonic Healthcare slumped 4.2 per cent to $29.23 after it announced its planned acquisition of Pathology Watch for $130 million. The company has commercialised an end-to-end digital platform for skin pathology and will be purchased by Sonic for $130 million through existing cash and debt facilities.

Originally published as Australian share market dips amid hotter-than-expected jobs increase