Aussie shares sink to 14-week lows as rate bets fade
A surprise drop in unemployment rattled the Australian share market. -AAP Image
Australia's share market has tumbled to its lowest level since April 5 after stronger-than-expected jobs data scuppered hopes of further Reserve Bank interest rate cuts.
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The S&P/ASX200 dropped 57.9 points on Thursday, down 0.66 per cent, to 8,741.6, as the broader All Ordinaries lost 56.6 points, or 0.62 per cent, to 9,022.8.
A surprise drop in unemployment to 4.3 per cent in October prompted interest rate markets to slash expectations for rate cuts, dragging on interest rate-sensitive sectors such as IT stocks (-4.0 per cent), real estate (-2.9 per cent), financials (-1.0 per cent) and industrials (-1.4 per cent).
With unemployment easing from a surprise spike in October, the Reserve Bank can turn its primary focus to inflation, which jumped outside its target range in the 12 months to the September quarter.
The Australian dollar is buying 65.57 US cents, up from 65.29 US cents on Wednesday, with the currency spiking shortly after the jobs data release.
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