The share market is weaker but has recovered some of its early losses due to a surprise jump in new jobs.
Investors were buoyed by the creation of 42,700 jobs in November, according to official data, more than double what economists had expected.
The numbers make a rate cut by the Reserve Bank appear less likely, Australian Stock Report head of research Chris Conway said.
“The jobless numbers had an immediate impact,” he said.
The share market opened more than one per cent lower, as crude oil prices hit new five-year lows after the Organisation of Petroleum Exporting Countries (OPEC) slashed estimates of demand for oil in 2015.
Bargain hunters have since pushed oil stocks up from their opening lows.
“A bit of panic selling on the open this morning – everyone rushing for the exits at the same time … but that sector has since settled down a bit,” Mr Conway said.
“The market rallied off its lows.”
Santos was the worst performer, down 28 cents, or 3.7 per cent, at $7.35, as it also announced it would slash capital expenditure by 25 per cent in 2015.
Woodside Petroleum had shed 28.5 cents to $34.615 and Oil Search had dropped five cents to $7.20.
Among the big four banks, Westpac was down four cents at $32.48, ANZ had dropped 15 cents to $31.34, National Australia Bank had fallen six cents to $32.24 while Commonwealth Bank added four cents to $82.39.
Big miners were also weaker, with BHP Billiton down 28.5 cents at $29.105, Rio Tinto down 92 cents at $55.48 and Fortescue Metals 6.5 cents weaker at $2.495.
Caltex was one of the few energy companies to rise, adding 64 cents to $31.03 after it flagged a rise in full year profit of up to 40 per cent.
KEY FACTS
* At 1200 AEDT on Thursday, the benchmark S&P/ASX200 index was down 18.1 points, or 0.34 per cent, at 5,240.9 points.
* The broader All Ordinaries index was down 20.9 points, or 0.4 per cent, at 5,216.2 points.
* The December share price index futures contract was six points lower at 5,245 points, with 14,946 contracts traded.
* National turnover was 538 million securities worth $1.5 billion.
