The Australian sharemarket is on the verge of resetting its record close for the second time this week after the country’s unemployment unexpectedly rose to 4.3 per cent in June, firming the odds that the Reserve Bank will cut interest rates next month.
Financial markets have increased the chance of a 25 basis point cut to 94 per cent when the RBA meets on August 12, up from 90 per cent before the labour force release. Economists had expected the jobless rate to hold at 4.1 per cent.
The data prompted the S&P/ASX 200 to climbed 0.7 per cent to 8624.20 at 12.15pm AEST in a broad-based rally, putting the gauge within touching distance of Tuesday’s record close of 8630.30.
Investors are piling back into the sharemarket after the ASX’s worst session on Wednesday since early May. Gains were led by blue-chip banks, which were the market laggards on Wednesday.
Commonwealth Bank, ANZ and Westpac were up by more than 1 per cent, while National Australia Bank was up 0.6 per cent.
The rate sensitive property sector also bounced, with Mirvac, Scentre Group and Charter Hall all up by around 1.7 per cent.
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In company news, CAR Group fell 1.8 per cent on news long-serving chief executive Cameron McIntyre is stepping down to be replaced by chief financial officer William Elliott. It also forecast net income to fall between $273 million and $277 million for the 2025 fiscal year.
PointsBet was flat despite receiving an unsolicited, all-scrip takeover offer of $1.03 from ASX-listed Betr Entertainment after Wednesday’s close. It told investors on Thursday to take no further action while it reviewed the bid.
Qantas rose 1 per cent after Citi upgraded the airline to “buy” with a target price of $12.20. The airline secured a Supreme Court injunction to stop stolen data being published by anyone, just weeks after cybercriminals accessed its systems and stole 5.7 million customers’ information.