Afternoon trading March 21

Thanks Oscar and morning crew.


Half-time round-up:

Disappointing jobs data dashed a tentative ASX rally as the big banks lost ground.

The share market was in positive territory immediately before the February employment report but slid into the red after jobs growth fell short of expectations. The ASX 200 dropped 18 points or 0.3 per cent to 6146, the index's lowest point in a week.

The financial sector was the prime culprit, sliding 0.7 per cent as NAB shed 0.8 per cent and CBA 0.2 per cent. Other rate-sensitive sectors also reversed, including consumer staples, down 0.6 per cent, and utilities, off 0.4 per cent. Those declines outweighed rises in the gold sector, up 1.3 per cent, metals & mining, up 0.8 per cent, and energy up 0.8 per cent.

The jobs report did little to clarify the outlook for rates, with an unexpected drop in the employment rate partly offsetting a miss in the headline number. The jobless rate dipped from 5 per cent in January to 4.9 per cent, its lowest level since May 2012. However, 7,300 full-time jobs were lost over the month, with a 11,900 increase in part-time work accounting for overall growth in the headline number of of 4,600. Economists had predicted a total increase of 14,800. The dollar rallied more than half a cent to 71.63 US cents.

Turning to companies making news today, Sigma Health rose 1.8 per cent as shareholders forgave news of a 34 per cent dive in full-year net profit as the company fended off a takeover approach from rival Australian Pharmaceutical Industries. The board of directors last week rejected the offer on the grounds the company can do better on its own.

Engineering giant Worley Parson rose 1.9 per cent after it reassured the market its acquisition of Jacobs Engineering Group in the US was proceeding smoothly.

The biggest loser on the index today was Eclipx Group, which yesterday lost a suitor in McMillan Shakespeare.Shares in the finance group fell another 8.4 per cent. Flight Centre dropped 4.8 per cent as it traded without its dividend.

Overnight, US stocks closed mostly lower after the Federal Reserve abandoned plans to raise rates twice more this year. The S&P 500 closed 0.29 per cent in the red in volatile trade as Fed Chair Jerome Powell held a press conference. S&P 500 futures staged a recovery this morning, recently ahead six points or 0.2 per cent.

Asian markets traded little changed. China's Shanghai Composite eased 0.1 per cent and Hong Kong's Hang Seng was flat. Trade on Japan's Nikkei was suspended for a bank holiday.

Gold futures rallied as the Fed decision weighed on the greenback. US futures were lately ahead $16.60 or 1.3 per cent at $US1,318.30 an ounce. Crude oil broke above $US60 a barrel in the US overnight, lately sitting at $US60.12 a barrel.

Looking ahead to tonight, the European Union meets to consider the UK's request for a delay to Brexit. The US has weekly jobless claims and some manufacturing figures.

Trading: wild old morning, with some hefty pullbacks. Began the day badly: missed the bounce in CYP and misread the size of the FLT dividend and bought too early (pro trader tip: learn to read. Will save you heaps.) Lost money on FLT but made it back and some by trading the swings in ANO (twice), SPT and EHL.