The Australian share market has set another record after the unemployment rate rose to its highest level in nearly four years, increasing the odds of an interest rate cut.
The benchmark S&P/ASX200 index on Thursday climbed 77.2 points, or 0.9 per cent, to 8,639.0, while the broader All Ordinaries rose 74.4 points or, 0.84 per cent, to 8,890.8.
The ASX200 climbed as high as 8,641.3 during intraday trading, breaking its previous record from June 11 by two points.
Its closing level also eclipsed Tuesday's close for its highest finish ever, while its 0.9 per cent gain was its best in three-and-a-half weeks.
The market was already in the green but its gains accelerated after the Australian Bureau of Statistics announced that the unemployment rate in June rose to 4.3 per cent, its highest level since November 2021.
Just 2,000 new jobs were created, far less than the 20,000 that economists had expected, which economists saw as boosting the odds that the Reserve Bank will cut rates at its August meeting.
"Softer jobs growth for a couple of months in a row, that is pointing to a cut coming in," AMP chief economist Shane Oliver told ABC News.
"Today's results will just add to expectations by money market traders and economists that we will get a cut in August. It has reinforced those expectations."
Betashares chief economist David Bassanese said an August rate cut would be a "slam dunk" unless second-quarter inflation came in at 2.8 per cent or higher, while State Street Investment Management economist Krishna Bhimavarapu said a larger-than-normal rate cut next month was a real possibility.
The increased expectations for lower rates sent shares higher and the Australian dollar lower.
The Aussie fell to a 23-day low against its US counterpart, changing hands for 64.71 US cents, from 65.25 US cents at close of business on Wednesday.
In the US overnight, US President Donald Trump retreated from his talk of firing Federal Reserve chair Jerome Powell, which briefly sent markets reeling.
Every ASX sector finished in the green, with industrials the biggest gainer, rising 1.4 per cent as Computershare added 3.0 per cent.
The big four banks were all higher, with CBA gaining 1.8 per cent to $180.80, Westpac advancing 1.2 per cent to $33.70 and ANZ and NAB both up by 1.1 per cent, to $33.70 and $38.70, respectively.
Australian Ethical grew 7.4 per cent to a nearly three-year high of $6.68 after the investment management company announced it had delivered 34 per cent growth in funds under management, to a record high of $13.94 billion.
Shares in Carsales' parent company, CAR Group, dropped 2.9 per cent after CEO Cameron McIntyre stood down following a nine-year tenure in the top job.
The mining giants had a quieter day, with BHP flat at $39.11, Fortescue adding 0.3 per cent to $16.91 and Rio Tinto advancing 0.5 per cent to $111.10.
Droneshield lost 9.1 per cent to $3.51, finally cooling off after Monday and Tuesday's red-hot trading. The drone defence company is still up 26.7 per cent on the week.
Betr rose 11 per cent to 30 cents as the sportsbetting platform and Japanese rival MIXI jostled for control of Pointsbet Holdings, which was flat at $1.185.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Thursday up 77.2 points, or 0.9 per cent, to 8,639.0
* The broader All Ordinaries rose 74.4 points, or 0.84 per cent, to 8,890.8
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 64.71 US cents, from 65.25 US cents at 4pm on Wednesday
* 96.37 Japanese yen, from 97.03 Japanese yen
* 56.87 euro cents, from 56.15 euro cents
* 48.47 British pence, from 48.66 pence
* 109.49 NZ cents, from 109.63 NZ cents
