Australian shares climb on strong US jobs data
Australian shares surged on Monday on the back of positive US jobs data
The US jobs data, coupled with comments from US central bank chief, Jerome Powell boosted Australian shares to a one-month high on Monday.
The mining and energy stocks gained traction on higher oil prices, along with the gains from the four banks.
The benchmark S&P/ASX200 index was up 1.489 % at 12 pm AEDT on Monday, while the local energy sector saw Santos Ltd shares jumping 4.32 % higher to $5.79.
The strong data put to rest fears of a slowdown in growth, showing that the US economy gained more jobs in December while boosting wages.
The metals and mining index jumped to the highest levels seen since October 2016, up 2.3 %, as iron-ore futures rose on positive policy lending from China’s central bank.
The energy index jumped 2.4 % to a three-week high lifted by heavyweight Woodside Petroleum Ltd climbing 1.7 % and Origin Energy Ltd up 1.4%.
Jerome Powell’s comments ease market jitters
IG market analyst, Kyle Rodda says US Federal Reserve chairman, Jerome Powell’s comments on Friday eased market instability.
‘The highly anticipated monthly non-farm payrolls figure, along with US Federal Reserve chair Jerome Powell's interview, delivered the Goldilocks outcome market participants were craving.
For those holding hope for financial markets and the global economy, the information gathered from each event soothed nerves that a major global economic slowdown is upon us.’ Mr. Rodda said.
Powell delivered the dovish stance that was needed to ease volatility, assuring traders that the Fed is watching the markets closely, and will be flexibile in their policy if need be.
While the market jitters may have eased, analysts say investors will be keeping an eye on trade talks between the US and China, which are due to begin this week.
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