Australian Unemployment at 4.9%; Qantas, AA in a Joint Venture

Marcus Jacob
09 Jun, 2011
New York City

Australian stocks gained and the dollar declined after the release of the May employment data. The Australian economy created 7,800 net new jobs in May and unemployment hovered at 4.9% for the third month in a row. Qantas won a preliminary approval for its joint venture with American Airlines.

[R]5:00 PM Sydney – Australian stocks gained and the dollar declined after the release of the May employment data. The Australian economy created 7,800 net new jobs in May and unemployment hovered at 4.9% for the third month in a row. Qantas won a preliminary approval for its joint venture with American Airlines.[/R]

The ASX 200 index added 0.2% or 12.80 to 4,549.6 and All Ordinaries index increased 0.3% or 13 to 4,617.10.

Stock trading turnover increased to 2.43 billion shares worth $5.3 billion. Of the shares traded, 572 increased, 535 declined and 404 were unchanged.

The Australian dollar decreased a fraction to US$1.05 and crude oil price edged 56 cents higher to US$101.30 a barrel.

The Australian economy created 7,800 net new jobs in May after eliminating 29,000 jobs in April. The unemployment rate remained at 4.9% for the third month in a row.

Full time jobs decreased 22,000 in the month and part-time jobs increased 29,800.

Stock Movers

Resources stocks closed mixed after commodities prices edged lower in New York trading.

BHP Billiton increased 16 cents to 442.95 and Rio Tinto gained 19 cents to $79.79.

Newcrest Mining declined 26 cents to $37.40 and the gold miner lowered its annual gold production output. Fortescue Metals closed unchanged at $6.35.

Qantas declined 4.5 cents to $1.90 after it won a preliminary regulatory approval for its joint venture with American Airlines to fly on trans-pacific route.

Australian Agriculture Company declined 2.5 cents to $1.40 after it resumed trading and the company said its suspension of exports to Indonesia would impact its current year performance. Prime Minister Julia Gillard ordered a ban of live cattle to Indonesia after a television show highlighted the mistreatment of cattle in Indonesian slaughter houses.

The company lowered the operating earnings estimate for the year between $50 million and $60 million from the previous estimate of between $60 million and $65 million.

Banks gained a fraction after trading at ten-month low. National Australian Bank increased 20 cents to $24.28 and Westpac added 26 cents to $21.79. ANZ increased 16 cents to $21.50 and Commonwealth Bank gained 28 cents to $49.60.