PERTH: The Australian sharemarket ran out of steam to close flat, after having earlier galloped out of the stalls on a wave of optimism following fresh signs of robust health in the world’s largest economy.
At the 4.15pm (AEDT) official market close, the benchmark S&P/ASX200 index was up 4.1 points, or 0.08 per cent, at 5155.7, while the broader All Ordinaries index lifted 4.4 points, or 0.08 per cent, at 5205.9.
The market raced out of the blocks, jumping more than 1 per cent in early trade, but pared its gains shortly after noon and crawled to the finish line as energy stocks sank.
But Atlantic Pacific Securities adviser Gary Huxtable said market sentiment remained positive.
“Some of the global uncertainties that have plagued the Australian markets over the last few months are dissipating,” Mr Huxtable said.
The catalyst for the market action today was large gains on US markets on Friday night following the latest non-farm payrolls print, which showed an increase of 211,000 in November, and upward revisions for September and October.
“We wouldn’t be surprised to see sentiment continue to remain positive leading into 2016, with investors becoming more willing to increase exposure leading into next year’s reporting season,” Mr Huxtable said.
CMC Markets chief analysts Ric Spooner said the November jobs data in the US “was good enough to cement the case for the Fed to lift rates in December”.
IG strategist Evan Lucas said the minority still holding on to the idea that Fed chair Janet Yellen won’t increase rates this month had been reduced to “the economic perma-bears” and “the most dovish economists”.
“Of the 73 economists surveyed by Bloomberg last weekend, only five see a ‘no change’ at the December meeting,” Mr Lucas said.
Meanwhile in other economic news, Ai Group found construction activity expanded for a fourth straight month in November in Australia, albeit at a lower rate.
“The strength in the Australian market is clearly coming from the banks again today, also with insurance company IAG making new two-month highs,” FP Markets analyst Gary Burton said.
Westpac led the gains, climbing 0.68 per cent to $32.52, followed by ANZ, which improved 0.59 per cent to $27.27.
