The Australian share market has closed marginally lower as investors consider the chances of more interest rate cuts in the wake of the latest unemployment figures.
At 1615 AEDT on Thursday, the benchmark S&P/ASX200 index had fallen 7.2 points, or 0.16 per cent, to 4,483.5 points, while the broader All Ordinaries index lost 6.7 points, or 0.15 per cent, to 4,505.2 points.
On the ASX 24, the December share price index futures contract was four points lower at 4,480 points, with 24,779 contracts traded, according to preliminary calculations.
CMC Markets sales trader Ben Taylor said the Australian market had a poor start to trading on Thursday in the wake of a negative lead from United States markets, but made up a lot of lost territory after the release of September’s jobs figures.
US markets had closed lower amid investor caution after Alcoa said that China’s economic slowdown was hitting aluminium consumption and Chevron slashed its earnings outlook.
Also, debt-ridden Spain was slapped with a two-notch credit downgrade by ratings agency Standard & Poor’s.
But the local bourse picked up as figures released by the Australian Bureau of Statistics showed that the unemployment rate rose to 5.4 per cent in September, from 5.1 per cent in August.
That was despite 14,500 jobs being added to the economy, well above the 5,000 economists had expected.
“The unemployment rate came out today worse than expected at 5.4 per cent and really justified the recent rate move (the Reserve Bank of Australia’s decision in October to cut the overnight cash rate by 25 basis points),” Mr Taylor said.
“I think it’s now pointing to a likely scenario that November will also incur a rate cut, and our market is just reflecting those reductions in rates.”
In the resources sector, global miner BHP Billiton shed 23 cents to $33.25, and Rio Tinto descended 41 cents to $55.42.
Iluka fell 64 cents, or 6.64 per cent, to $9.00 after the mineral sands miner posted a 58 per cent fall in third quarter sales revenue due to lower production and demand.
Rare earths miner Lynas plunged 13 cents, or 15.12 per cent, to 73 cents after a Malaysian Court delayed the start of production at its plant to consider an application by opponents.
In the banking sector, National Australia Bank added five cents to $26.25, ANZ found five cents at $25.61, Commonwealth Bank gained nine cents at $56.74, and Westpac picked up eight cents at $25.80.
Among other stocks, News Ltd parent News Corporation was 37 cents weaker at $24.19.
News Ltd’s takeover of pay-TV owner Consolidated Media Holdings looks set to proceed after the competition regulator said it would oppose a potential rival offer from Seven Group Holdings.
Seven climbed 25 cents to $7.28, and Consolidated Media was up four cents at $3.42.
Pallet supplier Brambles was steady at $7.15 as it said it was on track to achieve its full year financial guidance after an improved first quarter sales performance.
Preliminary national turnover was 1.52 billion securities worth $3.18 billion, with 560 stocks down, 423 up and 334 unchanged.
