Australian investors dialled back their enthusiasm as positive labour market data pointed to a possible later cut to rates in 2025.
The S&P/ASX 200 dipped 59.3 points, or 0.71%, to 8,271 points as of 10:30am AEDT. The index has lost 1.78% over the last five days, and sits 2.86% below its 52-week high.
All 11 sectors opened the session in the red. Materials slipped 0.91%, industrials retreated 0.23%, and utilities edged back 0.23%.
The session’s top sector, energy, is down by 0.08%, continuing its 0.87% decline over the last five days.
Australia’s unemployment rate fell below 4% to 3.9% in November — the first time since March — while the under-employment rate fell to a 19-month low of 6.1%.
Employment growth was stronger in November, rising to 35,600 versus weaker October growth of 12,100.
ANZ economists expect the Reserve Bank of Australia (RBA) will not start cutting rates until May 2025.
“The shift in RBA tone earlier this week lifted the probability of a February cut, but this data offsets that to some degree,” economists Jack Chambers, Brian Martin, and Daniel Hynes say in a research note today.
Friday’s top movers includes Deterra Royalties (ASX:DRR), which advanced 2.56% to $4.01. Arcadium Lithium (ASX:LTM) climbed 1.76% to $8.11, and Yancoal Australia (ASX:YAL) rose 1.72% to $6.51.
Meanwhile, gold producers Evolution Mining (ASX:EVN) and Westgold Resources (ASX:WGX) slid 3.05% to $5.08 and 2.94% to $2.97, respectively.
The S&P/ASX 200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation.
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & iStock
