PERTH: The Australian sharemarket is higher amid a broad-based rally at noon, as strong US jobs data and signs of strength in the world’s largest economy all but seals a December Federal Reserve rate hike.
At 12.05pm (AEDT), the benchmark S&P/ASX200 index was up 28.6 points, or 0.56 per cent, at 5180.2, while the broader All Ordinaries index lifted 28.9 points, or 0.56 per cent, at 5230.4.
The market had raced out of the blocks, jumping more than 1 per cent in early trade.
The lift followed 2 per cent 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.
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 in December 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.
