Updated
Updated · Bloomberg · Jul 23
ASX 200 Ends Up 0.2% as 76,000 Jobs Boost RBA Hike Odds
Updated
Updated · Bloomberg · Jul 23

ASX 200 Ends Up 0.2% as 76,000 Jobs Boost RBA Hike Odds

3 articles · Updated · Bloomberg · Jul 23

Summary

  • The ASX 200 finished just 16 points higher at 8,839 after giving back most of an earlier 1.1% rally, as June jobs data sharply shifted rate expectations.
  • Australia added 76,000 jobs in June against forecasts for 15,000, while unemployment held at 4.4%, pushing the Australian dollar up 0.4% to US70.15¢ and the 10-year yield to 4.97%.
  • Rate markets now imply a 36% chance of an RBA hike in August and fully price one by year-end, with next week’s CPI seen as decisive if trimmed-mean inflation tops the RBA’s 3.8% forecast.
  • Materials and energy helped keep the index positive: James Hardie jumped 6.1% after lifting sales guidance, miners rose with gold near $4,116 an ounce and iron ore up 1.7%, and oil at $96.24 supported Woodside and Karoon.
  • Technology was the main drag after Alphabet’s earnings disappointed, sending Xero down 5%, WiseTech 7% and TechnologyOne 3.7%.

Insights

As new taxes cool housing and Mideast conflict fuels inflation, will the RBA's next move crash property or prices?
Facing a global energy shock, is the RBA's inflation-fighting playbook now obsolete and risking a major policy error?
Is the Mideast conflict rewiring supply chains for an era of permanently higher interest rates worldwide?