Australian Jobless Rate at 12-year High, Stocks Decline

Marcus Jacob
11 Dec, 2014
New York City

Australian unemployment rate increased to a 12-year high as the job creation slows down and energy companies curtail investments. Santos Limited plunged 8% after the natural gas explorer announced 25% cut in 2015 exploration budget, following other energy companies.

[R]5:30 PM Sydney – Australian unemployment rate increased to a 12-year high as the job creation slows down and energy companies curtail investments. Santos Limited plunged 8% after the natural gas explorer announced 25% cut in 2015 exploration budget, following other energy companies.[/R]

Stocks in Australia traded lower after energy related stocks took another dive following the second day of losses in world oil prices.

The Australian Bureau of Statistics said unemployment rate in November slightly jumped to 6.3%, a 12-year high as the jobs. The economy created net new 42,700 jobs after adding 24,100 jobs in the previous month.

The Melbourne Institute survey result showed consumer inflation expectations in December dropped to 3.4% from 4.1% in November.

Australian dollar closed at 83.24 U.S. cents and in stock-trading turnover climbed to 944 million shares worth $5.4 billion.

ASX 200 Index slipped 28 or 0.5% to 5,231 and broader All Ordinaries Index fell 29.70 to 5,207.40.

In commodities trading, gold climbed US$5 to US$1,227 an ounce and light crude oil declined $2.88 to US$60.94 a barrel.

Australian Stock Movers

Caltex Australia Limited jumped 2.9% to $31.26 after the petroleum products refiner forecasted profit for the year to climb 40% up to $470 million from a year ago.

Federation Centres Limited closed unchanged at $2.75 after the property developer announced completion of the purchase of Currambine Central shopping centre in Western Australia for $74 million.

Santos Ltd tumbled 8.3% to $7 after the oil and gas producer said it plan reduce capital spending by $700 million in 2015 and may sell some of its assets.

Transurban Group gained 1% to $8.63 after the toll road network operator is scheduled to open 95 Express Lanes Project in America by tomorrow and start collecting toll by the month-end.