FX.co ★ Australian Shares Hit 3-Month Low

The S&P/ASX 200 index declined by 0.8%, falling below the 8,720 mark on Thursday, marking its third consecutive session of downturns and reaching its lowest point in over three months. The decline followed the release of robust employment data, which tempered expectations for imminent rate cuts. In October, Australia's labor market demonstrated strength with the unemployment rate dropping to 4.3% from the previous 4.5%, and an employment increase of 42,200, significantly surpassing the anticipated 20,000 rise, primarily fueled by full-time job creation. As a result, the likelihood of any additional policy easing has been substantially reduced, with the probability of a rate cut in May plummeting to 32% from nearly 70% before the data was released. Energy stocks led the decline, falling 1.8% and disrupting a five-day rally amid a decline in global oil prices. Technology stocks continued their downward trend, declining by 1.4%, driven by a 4.6% drop in software leader Xero. In the financial sector, three of the Big Four banks experienced losses, with ANZ leading the decline at 3.7%. Conversely, Commonwealth Bank saw a slight increase of 0.7% after four sessions of losses. These movements pushed the financial sector down as much as 0.7%, reaching its lowest level since September 26.