Strong Jobs Report Lifts Australian Dollar

Marcus Jacob
07 Jul, 2011
New York City

Australian stocks closed flat after the June employment reports showed stronger than expected job growth. Employers added 23,400 new jobs in June and unemployment hovered near 4.9%. Commodities and Australian dollar gained lifting resource linked stocks.

[R]5:00 Sydney – Australian stocks closed flat after the June employment reports showed stronger than expected job growth. Employers added 23,400 new jobs in June and unemployment hovered near 4.9%. Commodities and Australian dollar gained lifting resource linked stocks.[/R]

Australian stocks closed flat after jobs report showed a vigor that surprised economists. Market indexes struggled despite the sharp increase of net new jobs of 23,400, higher than 15,000 estimated by most economists.

Employers added 23,400 new jobs in June according to the latest data released by the Australian Bureau of Statistics. The unemployment rate stayed at 4.9%. The economy generated 59,000 new full-time jobs and part-time employment fell 35,600.

The unemployment rate has remained stable at 4.9% and Western Australia led the nation with the lowest rate of 4.2%. The rate increased to 5.2% in the NSW and to 5.2% in Queensland and declined to 4.6% in Victoria.

The ASX 200 index added 0.50 to 4,605.5 and All Ordinaries index increased 2.50 to 4,666.10.

In trading turnover decreased to 1.75 billion shares worth $4.09 billion changed hands and 451 stocks increased, 51 decreased and 364 were unchanged.

The Australian dollar increased 0.1% to US$1.076 and fetched 86.89 yen.

Stock Movers

News Corp decreased 62 cents to $16.55 after several of journalists in the UK were involved in hacking voice mails of murdered teenager.

The news led to the announcement of Parliament inquiry and prompted the calls of resignation of tabloid chief executive. Several companies including Ford, General Mills and Lloyds announced cancellation of advertising contracts.

Several tabloid news papers controlled Rupert Murdoch have the subject of raunchy reporting and questionable journalistic ethics in the UK.

The strong employment data lifted retailers.

Myer added 6 cents to $2.63 and JB Hi-Fi gained 39 cents to $16.98. Billabong increased 20 cents to $6.24 and David Jones added 7 cents to $3.97.

Coal miners rebounded a day after carbon tax worries dragged companies in the sector. Rio Tinto controlled Coal & Allied rebounded $2.60 to $102.71.

BHP Billiton decreased 3 cents to $44.62 and Rio Tinto declined 5 cents to $83.55.