ASX 200 falls to near 7,740 on positive Australian jobs data

The ASX 200 Index lost its daily gains and slipped into bearish territory, trading near 7,740. The reversal could be attributed to the release of positive employment data from Australia. Quarterly Employment Change surged to 116,500 in February, beating expectations of 40,000 and the previous reading of 15,300. In addition, the unemployment rate rose by 3.7%, lower than the expected 4.0% and the previous 4.1%. These positive data help the Reserve Bank of Australia to maintain a hawkish stance.

However, with the Wall Street rally overnight, the ASX 200 index jumped nearly 1.0% in early trading to top 7,770 points. The surge came after the US Federal Reserve reiterated its expectation of three interest rate cuts this year. The S&P 500 reached 5,200 after the Fed decided to hold interest rates at 5.5%. Base metals, including copper and palladium, also rebounded overnight.

The Australian stock market mirrored the retreat in financials, with major stocks falling significantly. Commonwealth Bank fell 0.42% to 116.60, National Australia Bank fell 0.54% to 34.50, and Westpac fell 0.75% to 26.40. In addition, Telix Pharmaceuticals, Ramelius Resources and Webjet were the top gainers, while Brickworks and Strike Energy were the top losers. $S&P/ASX 200(.XJO.AU)$ $S&P/ASX 200 VIX INDEX(.XVI.AU)$ $S&P/ASX 200 OPIC(OXJO.AU)$