The share market hit its highest level this year as regional markets rallied and unemployment fell to a two-year low.
At lunchtime the ASX 200 was ahead 64 points or 1.35% at 4788, its highest level since December 31. All sectors were trading higher, with the biggest gains coming in materials +1.7%, metals & mining +1.6% and industrials +1.6%.
"People have been putting the floods into perspective, and the dire straits some companies thought they were going to be in may not be as dire as anticipated," Michael Heffernan, senior client advisor at Austock Group told Fairfax. "Putting the floods to one side, we've seen markets doing well, Portugal showing signs they might not be so bad after all and commodity prices looking spritely."
Unemployment dropped 0.2% last month to 5%, its lowest level since January 2009. However, just 2,300 jobs were created, the smallest number in 10 months of gains and well below economists' expectations for a rise of around 25,000.
"It's the first disappointment we've had for a year, really," JP Morgan chief economist Stephen Walters told Fairfax. "Remember, we've had huge gains of about 380,000 jobs this year, so this is a pretty small setback in that context."
The dollar sank nearly half a cent in response to the jobs data but quickly rebounded, recently buying 99.64 U.S. cents.
Asian markets were stronger. Japan's Nikkei rallied 0.62%, Shanghai 0.2% and Hong Kong's Hang Seng 0.92%. Dow futures were recently at -7.
Crude oil futures rallied 22 cents this morning to $91.97 a barrel. Spot gold was $2.60 weaker at $1,385.40 an ounce.
A fine morning for the overall market but slow going for this trader. Just one trade completed - took a day's wage out of the bounce in CFU but could have traded it better. The rest of the morning was all unfilled buy orders and missed opportunities.
