Thanks Endless. Half-time round-up:The share market scaled a...

Thanks Endless.

Half-time round-up:

The share market scaled a 20-month peak this morning as traders bet that weak jobs news strengthened the case for further rate cuts.

At lunchtime the ASX 200 was 46 points or 1% ahead at 4785, a level last seen in May 2011. The rally was fuelled by sectors sensitive to lower interest rates, including consumer stocks and financials. Consumer staples rallied 1.2%, financials 1.1% and consumer discretionary 0.9%.

A strong morning for the local market got even better after the 11.30am EST release of December jobs figures appeared to support the case for another rate cut when the Reserve Bank sits in February. The unemployment rate rose to 5.4% from a revised 5.3% in November as the economy lost 5,500 jobs.

"The RBA looks at the employment data closely, and this figure is definitely supportive for the argument to cut rates further," Tom Kennedy, economist at JPMorgan, told Fairfax. "Our outlook is for a 25 basis cut in February. Further rate cuts will be predicated on more weakness in employment."

Asian markets were mixed. Shanghai extended yesterday's pullback, falling 0.48%, Hong Kong's Hang Seng rebounded by 0.41% and Japan's Nikkei added 0.42%. Dow futures were recently up five points or less than 0.1%.

Crude oil futures eased two cents this morning to US$94.12 a barrel. Spot gold was 40 cents softer at US$1,679.60 an ounce. The dollar was buying $US1.055.


No place for the squeamish, the stock market. Slash hundreds of jobs and your share price rockets (take a bow, Boral). Unemployment kicks up and champagne corks pop on the stock market as traders anticipate lower interest rates. It's a moral vacuum. No wonder people think we're a shower of bar stewards. I have to help old ladies cross the road to feel better about myself. This bar steward had a reasonable morning, picking up a couple of pips in the ARV bounce and a few more when DCG offered a second opportunity for those who missed the first.