PERTH: The Australian sharemarket was higher at noon during choppy trade ahead of key US employment data tonight.
At 12.05pm (AEST), the benchmark S & P/ASX200 index had gained 20 points, or 0.4 per cent, 5047.8, while the broader All Ordinaries lifted 19 points, or 0.38 per cent, to 5067.7.
The benchmark index had crossed the unchanged mark six times before noon, before heading sharply higher as banking and mining stocks turned positive.
“Tonight’s US non-farm payroll report may dictate some trader caution today,” CMC Markets chief analyst Ric Spooner said.
“The major risk appears to be if the outcome is a strong jobs number. Given that the Fed is comfortable with the broad trend of job growth, a strong number would improve the atmosphere for a September rate hike,” he said.
“Conversely it would take a really weak report and/or significant downward revisions to past data to create a situation where the labour market became a barrier to the Fed making its first move this year.”
While China’s stock markets were closed for a two-day holiday centred on a World War II commemoration, European sharemarkets enjoyed a strong rebound overnight.
On European markets, France’s CAC 40 bounded 2.2 per cent higher, while Germany’s DAX 30 surged 2.7 per cent as European Central Bank chief Mario Draghi left the door open for further stimulus.
Meanwhile, the Dow Jones Industrial Average eked out a minor increase.
IG market analyst Angus Nicholson said the services and non-manufacturing PMI numbers out of the US overnight had been “strong” while Mr Draghi’s comments meant it appeared “likely that they will step up quantitative easing stimulus with most seeing December as a potential starting date”.
