The ASX 200 is soaring in trade this morning with the index up around 1.6%. This move follows the strong rallies in Europe and the US after the non-farm payrolls results Friday reduced pressure on the US Federal reserve to raise rates this month and perhaps in 2015.
With just 142,000 jobs created during September the print was a huge miss given economists had been expecting the economy to add 200,000 jobs. Adding to the disappointment was the fact that the August payrolls, which were expected to be revised up, was actually revised 37,000 lower to 136,000.
While weaker jobs growth suggests the economy expanding at a slower pace than previously thought traders appear relieved that the prospect of the start of the Fed’s monetary tightening looks to have been delayed.
So the Dow rose 1.23%, the Nasdaq 1.74% and the S&P 500 1.43%.
That’s propelled the ASX 200 around 85 points higher this morning. All sectors are higher with most stocks in the green. BHP is up 3.5%, Rio is 2.3% higher the ANZ is lagging its major bank rivals with a gain of just 0.9% while the rest of the Big 4 are up around 1.5% on average. Telstra is up a little under 1%.
Potentially also helping the market is more good news on the economic front with the latest update on Australia’s massive services sector from the AiGroup showing that services are having their longest period of expansion since before the GFC in March 2008.
Here’s the chart of the ASX so far.