Jobs figures propel stocks rally
July 8 (AAP) The Australian share market built on an already strong start to the day’s trading after the release of better-than-expected jobs data, which boosted bank stocks and the Australian dollar.
At midday, the major indices had added another 0.1 per cent to gains at market open. (Mogi: ASX200 up 2.21% as of 14:50 Sydney time)
The benchmark S&P/ASX200 index was up 96.9 points, or 2.28 per cent, at 4351.5 points, while the broader All Ordinaries index gained 91.6 points, or 2.14 per cent, to 4369.4.
In the major economic news of the day, Australia added almost 46,000 jobs in June, the most since January, underscoring the strength of local demand. The jobless rate fell to 5.1 per cent for the month - the lowest rate since January 2009. The news also sent the Australian dollar soaring about 0.8 US cents.
RBS Morgans’ equities adviser Richard Gregory said the local market had surged on Wall Street’s 3 per cent lift during which US financial stocks led the way.
Major resources and oil stocks also enjoyed strong gains after a lift in commodity prices in London overnight and a surge in the oil price by over $US2.00, Mr Gregory said.
BHP Billiton had gained 77 cents or 2.06 per cent to $38.20 and rival Rio Tinto had added $1.45 or 2.2 per cent to $67.29.
The spot price of gold in Sydney was $US1205.70 a fine ounce, up $US16.45 from yesterday's closing price of $US1189.25.
What you need to know:
· The Australian dollar was buying 87.25 US cents
· In the US, the S&P500 rose 32.21 points to 1060.27
· In Europe, the FTSE 100 rose 49.82 points to 5014.82
· Gold rose $US3.80 an ounce to $US1198.90
· Oil rose $US2.09 a barrel to $US74.07
· The Reuters Jefferies CRB index rose 1.75%
AAP, with BusinessDay
"Mogi" Munkhdul Badral
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