Aussie shares surge as jobless rise spurs rate cut hope
Near midday on Thursday, the benchmark S&P/ASX200 index was up 63.3 points to 8,624.9, a gain of 0.74 per cent, while the broader All Ordinaries had gained 59 points, or 0.66 per cent, to 8,862.1.
June labour force data released by the Australian Bureau of Statistics showed employment increased by 2,000 jobs, while the unemployment rate rose to 4.3 per cent.
Consensus predictions were for 20,000 jobs to be created, and the jobless rate to stay at 4.1 per cent.
The RBA will likely cut interest rates in September following the result, AMP chief economist Shane Oliver told ABC News.
"For those looking for a black cat you get a ticket in terms of the jobs number because they were on a soft side," he said on Thursday.
"Softer jobs growth for a couple of months in a row, that is pointing to a cut coming in. Today's results will just add to expectations by money market traders and economists that we will get a cut in August. It has reinforced those expectations."
Betashares chief economist David Bassanese said an August rate cut would be a "slam dunk" unless second-quarter inflation data is higher than expected.
The Australian share market, which was already back in the green after one of its worst sessions since in early May on Wednesday, surged following the release of the jobs report.
The Australian dollar meanwhile dropped to a 23-day low, trading for 64.78 US cents, from 65.25 US cents at close of business on Wednesday.
In the US overnight, US President Donald Trump retreated from talk of firing Federal Reserve chair Jerome Powell.
Wall Street rocked as the story unfolded but bounced back by the market's close, with the S&P500 finishing up 0.3 per cent.
Every ASX sector was in the green at midday, with property the biggest gainer, rising 1.2 per cent. Goodman Group had added 1.2 per cent and Scentre Group had climbed 1.6 per cent.
Miners also rebounded with 16 of the top 20 stocks back in the green, including BHP's 0.56 per cent gain, Rio Tinto rising 0.98 per cent and Fortescue up by 0.5 per cent.
Superfund Australian Ethical was up 3.2 per cent after the investment management company announced it had delivered 34 per cent growth in funds under management, to a record high of $13.94 billion.
All the big four banks had also gained, with both the CBA and Westpac up 1.2 per cent, NAB climbing 0.86 per cent and ANZ rising 0.75 per cent.
Shares in Carsales' parent company, CAR Group, took a 2.3 per cent hit after CEO Cameron McIntyre stood down following a nine-year tenure in the top job.
The Australian dollar was trading for 64.78 US cents, from 65.25 US cents.
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West Australian
2 minutes ago
- West Australian
Donald Trump news: US President speaks as he arrives in Scotland to open new golf course, discuss trade
US President Donald Trump has arrived in Scotland as his family's business prepares for the upcoming opening of a new golf course in Aberdeenshire billed as 'the greatest 36 holes in golf'. Air Force One - the presidential plane - touched down at Prestwick Airport in Ayrshire on Friday just before 8.30pm (local time). Mr Trump was met by Scottish Secretary Ian Murray as he disembarked, before heading to the waiting presidential helicopter Marine One, bound for his nearby Turnberry golf course. His presence is expected to spark protests across the country, with Scottish Police being forced to request aid from other forces to help increase manpower for the trip. Mr Trump is set to spend time at his golf resort in Turnberry on Scotland's west coast, before heading to his sprawling golf property 320 kilometres away near Aberdeen in the east. But it won't be all play and no work. He will meet British Prime Minister Keir Starmer and European Commission President Ursula von der Leyen who both want to talk about trade. Mr Trump said Washington was also working hard on a possible trade deal with the EU, which he said was very keen to make a deal. EU diplomats say a deal could result in a broad 15 per cent tariff on EU goods, mirroring a framework agreement with Japan and half of the 30 per cent tariff Trump is threatening to impose by August 1. Speaking to reporters on the tarmac, Mr Trump said he'd be with his son and 'he's gonna cut a ribbon' for the second Trump golf course opening soon near Aberdeen. Eric Trump, who now helps run the Trump Organisation, previously joined his father for the groundbreaking in 2023. Although Eric did not travel with Donald on Air Force One, a Trump private plane was seen landing near Glasgow earlier in the day. Mr Trump also used the opportunity to send a blunt message to Europe, saying, 'This immigration is killing Europe. And the other thing, stop the windmills.' He added: 'Wind power generation is killing the beauty of your country.' His opposition to wind farms is longstanding, including previous legal efforts to protect views from his golf courses in Scotland. On immigration, Mr Trump warned, 'On immigration, you better get your act together. You're not going to have Europe anymore.' He contrasted this with his administration's tough US-Mexico border policies, suggesting Europe needs to act decisively on immigration controls. As part of the visit, he will open a second 18-hole course on the Aberdeen property named in honour of his mother, Mary Anne MacLeod, who was born and raised on a Scottish island before emigrating to America. The White House has described the trip as 'private'. Mr Trump's visit to Scotland is in the 'public interest', UK Chancellor Rachel Reeves insisted, pointing out a recent trade deal. 'That has a tangible benefit for people here in Scotland, whether it is people working in the Scotch whisky industry or people working in the defence sector, like here at Rolls-Royce, that trade deal means lower tariffs than any country in the world on things that we send to the US,' she said. While in the UK, he will also meet Scotland's First Minister John Swinney, who had publicly backed Democratic candidate Kamala Harris in the 2024 US presidential election. 'The Scottish leader is a good man, so I look forward to meeting him,' Mr Trump said. Swinney flagged in an interview with PA that he intended to raise 'the awfulness of the situation in Gaza and the unbearable human suffering' with Trump. 'I intend to take that opportunity to make sure that Scotland's voice is heard,' he said. The trip shows how the president has become increasingly comfortable intermingling his governing pursuits with promoting his family's business interests. Mr Trump has described Scotland as a 'very special place' and made a similar trip there in 2016 during his first run for the presidency, but he will not necessarily get a warm welcome. About 70 per cent of Scots have an unfavourable opinion of Trump, while 18 per cent have a favourable opinion, an Ipsos poll in March found. His visit requires a major police operation that will cost Scottish taxpayers millions of pounds as protests are planned over the weekend. The union representing officers is concerned that they are already overworked and will be diverted from their normal duties. The overseas travel comes as Trump faces the biggest domestic political crisis of his second term in office. Allies and opponents alike have criticised his administration's handling of investigative files related to disgraced financier and sex offender Jeffrey Epstein's criminal charges and the circumstances of his 2019 death in prison. The issue has caused a rare breach with some of Trump's most loyal Make America Great Again supporters, and majorities of Americans and Trump's Republicans say they believe the government is hiding details on the case, according to Reuters/Ipsos polling. White House officials, frustrated by the ongoing focus on the Epstein saga, are hoping the controversy dies down while Trump is abroad, one person familiar with the matter said. with PA and Reuters
Perth Now
2 minutes ago
- Perth Now
‘Better get your act together': Trump arrives in Scotland
US President Donald Trump has arrived in Scotland as his family's business prepares for the upcoming opening of a new golf course in Aberdeenshire billed as 'the greatest 36 holes in golf'. Air Force One - the presidential plane - touched down at Prestwick Airport in Ayrshire on Friday just before 8.30pm (local time). Mr Trump was met by Scottish Secretary Ian Murray as he disembarked, before heading to the waiting presidential helicopter Marine One, bound for his nearby Turnberry golf course. His presence is expected to spark protests across the country, with Scottish Police being forced to request aid from other forces to help increase manpower for the trip. Mr Trump is set to spend time at his golf resort in Turnberry on Scotland's west coast, before heading to his sprawling golf property 320 kilometres away near Aberdeen in the east. But it won't be all play and no work. He will meet British Prime Minister Keir Starmer and European Commission President Ursula von der Leyen who both want to talk about trade. Mr Trump said Washington was also working hard on a possible trade deal with the EU, which he said was very keen to make a deal. EU diplomats say a deal could result in a broad 15 per cent tariff on EU goods, mirroring a framework agreement with Japan and half of the 30 per cent tariff Trump is threatening to impose by August 1. Speaking to reporters on the tarmac, Mr Trump said he'd be with his son and 'he's gonna cut a ribbon' for the second Trump golf course opening soon near Aberdeen. Eric Trump, who now helps run the Trump Organisation, previously joined his father for the groundbreaking in 2023. Although Eric did not travel with Donald on Air Force One, a Trump private plane was seen landing near Glasgow earlier in the day. Mr Trump also used the opportunity to send a blunt message to Europe, saying, 'This immigration is killing Europe. And the other thing, stop the windmills.' He added: 'Wind power generation is killing the beauty of your country.' His opposition to wind farms is longstanding, including previous legal efforts to protect views from his golf courses in Scotland. On immigration, Mr Trump warned, 'On immigration, you better get your act together. You're not going to have Europe anymore.' He contrasted this with his administration's tough US-Mexico border policies, suggesting Europe needs to act decisively on immigration controls. As part of the visit, he will open a second 18-hole course on the Aberdeen property named in honour of his mother, Mary Anne MacLeod, who was born and raised on a Scottish island before emigrating to America. The White House has described the trip as 'private'. Mr Trump's visit to Scotland is in the 'public interest', UK Chancellor Rachel Reeves insisted, pointing out a recent trade deal. 'That has a tangible benefit for people here in Scotland, whether it is people working in the Scotch whisky industry or people working in the defence sector, like here at Rolls-Royce, that trade deal means lower tariffs than any country in the world on things that we send to the US,' she said. While in the UK, he will also meet Scotland's First Minister John Swinney, who had publicly backed Democratic candidate Kamala Harris in the 2024 US presidential election. 'The Scottish leader is a good man, so I look forward to meeting him,' Mr Trump said. Swinney flagged in an interview with PA that he intended to raise 'the awfulness of the situation in Gaza and the unbearable human suffering' with Trump. 'I intend to take that opportunity to make sure that Scotland's voice is heard,' he said. The trip shows how the president has become increasingly comfortable intermingling his governing pursuits with promoting his family's business interests. Mr Trump has described Scotland as a 'very special place' and made a similar trip there in 2016 during his first run for the presidency, but he will not necessarily get a warm welcome. About 70 per cent of Scots have an unfavourable opinion of Trump, while 18 per cent have a favourable opinion, an Ipsos poll in March found. His visit requires a major police operation that will cost Scottish taxpayers millions of pounds as protests are planned over the weekend. The union representing officers is concerned that they are already overworked and will be diverted from their normal duties. The overseas travel comes as Trump faces the biggest domestic political crisis of his second term in office. Allies and opponents alike have criticised his administration's handling of investigative files related to disgraced financier and sex offender Jeffrey Epstein's criminal charges and the circumstances of his 2019 death in prison. The issue has caused a rare breach with some of Trump's most loyal Make America Great Again supporters, and majorities of Americans and Trump's Republicans say they believe the government is hiding details on the case, according to Reuters/Ipsos polling. White House officials, frustrated by the ongoing focus on the Epstein saga, are hoping the controversy dies down while Trump is abroad, one person familiar with the matter said. with PA and Reuters
The Age
2 hours ago
- The Age
A China shock 2.0 is emerging to rock America
Yet instead of pursuing the policies needed to meet this threat head-on, the MAGA agenda is heavily focused on fighting the last war – on bringing manufacturing jobs lost to China and elsewhere back to the US. The challenge, Autor and Hanson argue, is not that of attempting to resuscitate the industrial might of a bygone age, but ensuring that the US is front and centre of the new technologies and able to convincingly harness them to its own ends. This endeavour is not obviously helped by Trump's scattergun approach to tariffs, punishing friend and foe alike, his propensity to alienate rather than co-operate with allies, the stupefying attacks on scientific research and the repudiation of foreign talent – once the very lifeblood of American advancement. Nor is it helped by the administration's casual disregard for the great asset of dollar hegemony which, bizarrely, Stephen Miran, Trump's chief economic adviser, seems to regard as in some way partly responsible for America's de-industrialisation. An administration seemingly hell-bent on fiscal ruin, and on weakening the dollar for the purposes of making US goods more competitive, doesn't exactly inspire international confidence in the dollar as a reserve currency asset. Loading China, by contrast, is investing heavily in the digital yuan as a way of internationalising its own currency, of offering an alternative to the fool's gold of cryptocurrency and of usurping the dollar for cross-border payments. Already, it is making steady progress. Why any longer should Brazil use the dollar for selling soybeans to China when Trump threatens the country with punitive tariffs for the sin of prosecuting his friend, Jair Bolsonaro, the former Brazilian president? Why indeed should it employ the dollar at all when the US regularly uses its power for extraterritorial purposes? In the developing world, Western influence is waning fast; China has been quick and single-minded at moving into its place. China has many problems and challenges, from the demographic to the still-deflating credit and property bubbles. But its catch-up and overtake approach to the technologies of the future is already paying big dividends. As, too, is the aggressive expansion of China's universities sector, originally begun under Jiang Zemin's presidency in the late 1990s, and heavily focused on Stem (science, technology, engineering and mathematics) subjects. According to the Australian Strategic Policy Institute (ASPI), the US-led China in 60 of 64 frontier technologies as recently as 2007, judged by share of the world's most-cited research, while China led the US in three. However, by 2023, these rankings were reversed, with China leading in 57 of 64 key technologies, and the US in seven. 'China has built the foundations to position itself as the world's leading science and technology superpower, by establishing a sometimes stunning lead in high-impact research across the majority of critical and emerging technology domains,' the ASPI says. All of the world's top 10 research institutions in some technologies are based in China, and are already collectively generating nine times more high-impact research papers than the second-ranked country (most often the US). The potential threat from Chinese AI is too great to ignore. Now, globally recognised companies at the forefront of their industries – such as Huawei in telecommunications, BYD in electric vehicles and Longi in solar wafers – have come from nowhere in less than 30 years to achieve world-leading positions. Industrial policy in China has, moreover, deliberately targeted key choke points in the supply chain, such that the US was this week forced to abandon its ban on the export of H20 Nvidia chips to China in return for China lifting similar export restrictions on the rare earth minerals vital to many hi-tech industries. The Nvidia ban was completely pointless in any case, serving only to turbocharge Chinese attempts to develop alternatives. Autor and Hanson suggest that the correct response to the China 2.0 shock is for the US to act in unison with commercial allies such as the EU, Japan, Canada, the UK, Australia and South Korea. Loading Counter-intuitively, Chinese companies should also be encouraged to set up production facilities in the US and elsewhere, rather similarly to the way that China once enticed Western companies to do the same in China as a way of speeding up technology transfer. Replicating Chinese industrial policy by aggressively promoting innovation in new fields, as happened in America and Europe during the Second World War, could also help narrow China's lead. It scarcely needs saying that Trump's America is at present doing the opposite of all these things. But just because Trump has got his head buried in the sand doesn't mean other nations should do the same. The potential threat from Chinese AI is too great to ignore. If China gets there first, it will reshape the world in its own image, and 'the end of history' will look very different from the one outlined by Francis Fukuyama back in 1992, when he declared the final triumph of liberal democracy.
