The share market shrugged off early weakness this morning as employment data topped expectations and Telstra and NAB reported solid earnings.
At lunchtime the ASX 200 was 11 points or 0.2% stronger at 4932 after dipping as low as 4907. Telecoms was the pick of the sectors, rising 1.4% after Telstra's first-half profit hit analysts' targets. NAB's $1.26 billion first-quarter profit helped financials edge up 0.3%. Consumer and energy stocks, property trusts, utilities and small caps all lost ground.
A tentative recovery in the market accelerated after the 11.30am EST release of jobs data overshadowed a plunge in business confidence. The unemployment rate held steady at 5.4% as the creation of 20,200 part-time jobs offset a loss of 9,800 full-time jobs.
"Optimists could focus on the rise in overall employment and conclude all is fine," CommSec economist Savanth Sebastian told Fairfax. "The pessimists would look at the third consecutive fall in full-time jobs coupled with the fall in hours worked and conclude something more concerning. What is clear is the job market isn’t shooting the lights out but by no means is unemployment soaring."
NAB's quarterly business survey made grimmer reading, with conditions and confidence slumping to levels last seen at the tail-end of the GFC. Business confidence dropped to -5 last quarter and conditions to -6, the worst results since 2009.
Asian markets were mixed. Shanghai eased 0.18%, Hong Kong's Hang Seng put on 0.12% and Japan's Nikkei dropped 0.79%. Dow futures were recently up five points or less than 0.1%.
Crude oil futures retreated eight cents this morning to US$96.76 a barrel. Spot gold was 90 cents weaker at US$1,677.20 an ounce. The dollar was buying $US1.0316.
A falling dollar and a rising share market suggest institutional traders see enough weakness in the morning's data to anticipate more rate cuts in the months ahead. Broadly positive for stocks. This morning was one long exercise in patience for me. Missed the first ICG dive to 11c by one trade but got it during the second test for a quick half pip. Also had an order at 10.5c that just missed out on the next down-leg. Be surprised if that order gets another sniff, but you never know. BLY has been a lovely bouncer lately but yet again I got stuck with a part-fill. Caught NMG near the low but a pygmy trade at this stage. First dab at TNP. Profitable morning but could have been much better with a little luck.
