ASX 200 Ends Up 0.2% as 76,000 Jobs Boost RBA Hike Odds
Updated
Updated · Bloomberg · Jul 23
ASX 200 Ends Up 0.2% as 76,000 Jobs Boost RBA Hike Odds
3 articles · Updated · Bloomberg · Jul 23
Summary
The ASX 200 finished just 16 points higher at 8,839 after giving back most of an earlier 1.1% rally, as June jobs data sharply shifted rate expectations.
Australia added 76,000 jobs in June against forecasts for 15,000, while unemployment held at 4.4%, pushing the Australian dollar up 0.4% to US70.15¢ and the 10-year yield to 4.97%.
Rate markets now imply a 36% chance of an RBA hike in August and fully price one by year-end, with next week’s CPI seen as decisive if trimmed-mean inflation tops the RBA’s 3.8% forecast.
Materials and energy helped keep the index positive: James Hardie jumped 6.1% after lifting sales guidance, miners rose with gold near $4,116 an ounce and iron ore up 1.7%, and oil at $96.24 supported Woodside and Karoon.
Technology was the main drag after Alphabet’s earnings disappointed, sending Xero down 5%, WiseTech 7% and TechnologyOne 3.7%.