Markets are lower after a stronger-than-expected US jobs report on Friday heightened expectations that the US Federal Reserve will approach further rate cuts with caution.
A sliding Wall Street on Friday has seen the ASX also lose ground. The S&P/ASX 200 wiped off 86.9 points, or 1.05%, to hit 8,207.20 points and cross below its 50-day moving average as of 10.30am AEDT.
The index has lost 0.52% over the last five days, but has gained 9.45% over the past year.
US December nonfarm payrolls rose 256,000, well above the anticipated 165,000, while the unemployment rate fell 0.1% to 4.1%.
“Stock markets sold off as a stronger than consensus December labour market report underscored expectations that the Fed will proceed hesitantly with further rate cuts,” ANZ analysts Felix Ryan, Brian Martin and Daniel Hynes say in a research note today.
A strengthening US dollar has driven the Australian dollar to its lowest level since 2020 at $0.6149.
ANZ says key economic data in Asia and Europe should help provide some direction for commodity markets.
All 11 sectors of the S&P/ASX 200 were in the red in early trade on Monday. Materials slid 0.19%, industrials was down 0.11% and energy edged back 0.02%.
The uranium miners made the top five, with Deep Yellow (ASX:DYL) advancing 1.88% to $1.22 and Paladin Energy (ASX:PDN) rising 1.52% to $8.03.
Mining services play NRW Holdings (ASX:NRW) slid 7.61% to $3.52 after its CFO, Richard Simons, resigned.
The company is on the hunt for a replacement but in the meantime Alexander Hall will assume the position of acting CFO.
The S&P/ASX200 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
