The headlines showing a strong jobs market in Australia have hit local equities
- Australian shares fell to their lowest in three months, S&P/ASX 200 to its lowest since August 5 after its sharpest fall in 7 weeks
The data:
- Australian October unemployment rate 4.3% (expected 4.4%, prior 4.5%)
- unemployment rate dropped, employment change is twice what was expected, full time jobs surged
- the fall in the jobless rate pulls back from a recent four year high
Like the headline says, the data destroys hopes of a rate cut for the Reserve Bank of Australia. For quite some time ahead. December rate cut pricing has dropped to around 20%. That's still way too optimistic.
