ASX closes flat on jobs data, as Flight Centre and tech stocks rise

The lowdown

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Labour force data released on Thursday morning showed employment beat expectations in June, with net employment up by 32,600, ahead of market forecasts of an increase of 15,000 jobs.

The figures sent the Australian dollar surging, with the currency sitting at 68 US cents in the late afternoon.

Bottle shop Dan Murphy’s and ALH Hotels operator Endeavour Group gained 0.3 per cent after the company said it would be moving early to implement regulatory changes proposed by the Victorian government this week, such as shorter operating hours for gaming areas and a $100 cash load limit for pokies.

Strong trading updates from buy now, pay later operator Zip Co, and QBE Insurance were also well received. Zip was 9.2 per cent stronger at lunchtime after the company revealed its quarterly revenues had lifted despite a decline in active customers, but ultimately closed 2.3 per cent higher.

QBE finished 2.4 per cent higher after reaffirming full-year guidance and saying insurance premiums were rising by 10 per cent across the group.

Coles Group shares closed 0.4 per cent lower, with Australia’s consumer watchdog raising concerns about its proposed acquisition of two milk processing facilities from Canadian-owned Saputo Dairy Australia for $105 million.

The Australian Competition and Consumer Commission is concerned that the acquisition would strengthen Coles’ position in the dairy supply chain and cause Saputo to exit the NSW milk market, which would reduce competition and cut prices farmers receive for raw milk.

Shares in pathology operator Australian Clinical Labs (ACL) declined by 1.9 per cent while its takeover target, Healius, gained 0.4 per cent after the ACCC also raised concerns about the competition implications of ACL buying Healius.

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Overnight, the S&P 500 rose 0.2 per cent for its seventh gain over the past eight days. It’s now up nearly 19 per cent for the year so far and at its highest level in more than 15 months.

The Dow Jones gained 0.3 per cent and the Nasdaq composite edged up by less than 0.1 per cent.

Quote of the day

“The cost of airfares is a huge problem for travellers. I think it’s the most ridiculous decision I’ve ever seen. We have Australian airlines like Qantas, which do not have the capacity for additional services, and yet we’re rejecting Qatar’s extra capacity.”

The proposed 472 cuts, which come as the company looks to continue to reduce costs, come as part of its ongoing T25 strategy, and just under a year after Brady was appointed chief executive and managing director.

With AP

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