INVESTORS were yesterday nervously awaiting the release of key US jobs figures, leading to subdued trading and a flat close.
The benchmark S&P/ASX 200 Index edged up
0.5 points to 4605.5.
Non-farm payroll data, to be released tonight, is considered an important barometer of the US economy. An increase in employment would raise hopes that the struggling economy is on the mend.
Arab Bank Australia treasury dealer David Scutt said the data could also have widespread implications for the global economy.
"If their job market isn't growing, it means their consumption isn't growing, which means global markets will slow," he said.
Royal Bank of Scotland's head of sales trading, Justin Gallagher, said investors were looking for indications of growth in the US jobs market before they committed to buying equities. "That will dictate the direction of next week's trading."
Mr Gallagher said the US earnings reporting season would begin next week and investors would watch closely for potential impact on the Australian market.
"The market sentiment at the moment is quite skittish," he said. "Any concerns about the overall state of corporations in the US will see further weakness."
Mr Gallagher said uncertainty about a carbon tax was adding to investor concerns. The federal government is due to announce details of its carbon tax package on Sunday.
The Australian market sagged in morning trade but got a boost before noon from jobs data showing the jobless rate in June was steady at
4.9 per cent.
The index hit a high of 4617.2 shortly before 2pm but dropped off by the session's close.
Investors dumped News Corp stock on revelations of phone hacking and payments to police for information by one of the global media giant's newspapers in Britain.
News Corp fell 62?, or
3.6 per cent, to $16.55. The non-voting scrip shed 66?, or 4 per cent, to $16.07. It finished the day as the
worst-performing stock in the top 50.
Among the big miners, BHP Billiton eased 3? to $44.42 and Rio Tinto dipped 5? to $83.55.
The financial sector rose marginally despite three of the big four banks finishing slightly lower. NAB rose 6? to $25.02, but Commonwealth Bank fell 8? to $51.39, ANZ 8? to $21.77 and Westpac 2? to $21.87.
Gold added to Wednesday's surge, finishing the session up $US15.75 at $US1532.93.
Frequently Asked Questions about this Article…
Why did the S&P/ASX 200 finish flat and what was the closing level?
Trading was subdued as investors waited for key US jobs data, leaving the benchmark S&P/ASX 200 largely flat. The index edged up 0.5 points to finish at 4605.5.
How could the US non-farm payrolls (US jobs data) affect Australian investors and markets?
The US non-farm payrolls are seen as an important barometer of the US economy. If employment rises, it can lift confidence in global growth and push investors toward equities. Market commentators in the article said the data could dictate next week’s trading and have widespread implications for global markets and Australian shares.
What happened to News Corp shares after the phone‑hacking revelations?
Investors dumped News Corp stock following revelations of phone hacking and payments to police by one of its British newspapers. The ordinary shares fell to $16.55 (about a 3.6% drop as reported) and the non‑voting scrip finished at $16.07 (about a 4% drop), making it the worst-performing stock in the top 50 that day.
How did the big miners BHP Billiton and Rio Tinto perform during the session?
Among the big miners, BHP Billiton eased to $44.42 and Rio Tinto dipped to $83.55 during the trading session.
What was the performance of the major Australian banks and the financial sector?
The financial sector rose marginally overall, despite three of the big four banks finishing slightly lower. NAB finished higher at $25.02, while Commonwealth Bank closed at $51.39, ANZ at $21.77 and Westpac at $21.87.
Did Australian jobs data influence the market on the day covered by the article?
Yes. Australia’s jobs data showed the jobless rate in June was steady at 4.9%, which gave the market a boost before noon. The index reached a high of 4617.2 shortly before 2pm but then dropped off by the close.
How did gold trade and what was the gold price reported in the article?
Gold added to Wednesday’s surge and finished the session up US$15.75 at US$1,532.93 per ounce, according to the article.
What other factors were making investors nervous besides US jobs data?
Commentators noted market sentiment was ‘quite skittish,’ with investors also watching the upcoming US earnings reporting season for signs of corporate health. In addition, uncertainty about a proposed carbon tax and the federal government’s imminent announcement of its carbon tax package were adding to investor concerns.
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