Shrugging off subdued leads the Australian share market jumped more than 1 per cent at open and sustained gains following monthly jobs numbers which have maintained the odds of a Reserrve Bank of Australia interest rate cut in August. Though Wall Street ended mostly flat investors have been encouraged by signs America will continue economic stimulus - from comments made by US Federal Reserve Chairman after the market closed.
As the US dollar weakened the Australian dollar soared in response, almost reaching 93 cents after spending much of the week near 90 cents. Across the local bourse the miners are leading gains and the gold sector forging ahead on the back of a boost in the price for the precious metal.
The S&P/ASX 200 index has jumped 53 points to sit at 4,957. On the futures market the SPI is 49 points stronger.
Australia's jobless rate rose more than expected last month as full-time employment fell while part-time employment grew. The Australian Bureau of Statistics reports the nation’s unemployment rate was 5.7 per cent in June from an upwardly revised rate of 5.6 per cent the month before. The economy added 10,300 new jobs in June, against expectations for flat job growth.
Shares in Finders Resources Limited (ASX:FND)
have risen 11.11 per cent after the mineral explorer scored the final permit required to start up its Wetar copper project in Indonesia.
Shares in Tiger Resources Limited (ASX:TGS)
have gained 11.43 per cent after the mineral explorer boosted the indicated and inferred resources in a deposit within the Lupoto Copper Project in the Democratic Republic of Congo.
Shares in Modun Resources Limited (ASX:MOU)
have surged 50 per cent as the Mongolian focused coal explorer celebrates mining licence approval for its Nuurst Thermal Coal Project.
Shares in Kentor Gold Limited (ASX:KGL)
have plunged 71.74 per cent as the gold explorer resumed trade and updated the market on a deal with its creditors - which is reliant on the potential sale of Kentor’s assets.
Best and worst performers
Most sectors are making gains: The best performing sector is materials gaining 206 points to 8,864. Shares in Perseus Mining Limited (ASX:PRU)
have risen 24.74 per cent and trading at $0.60. Shares in Evolution (ASX:EVN)
and Silver Lake Resources Limited (ASX:SLR)
are also stronger.
The consumer staple sector is trading steady, at 9,566. Shares in Coca-Cola Amatil Limited (ASX:CCL)
have fallen 3.23 per cent, trading at $12.41. Shares in Wesfarmers Limited (ASX:WES)
are lower while shares in Treasury Wine Estates Limited (ASX:TWE)
are higher at noon.
Gold and the dollar
Gold is trading at $US1,281 an ounce.
The Australian dollar is buying 92.42 US cents.