What strong jobs data means for ASX 200 shares

ASX 200 shares have started the day trending lower despite some positive economic indicators appearing in the latest ANZ jobs survey data.
The post What strong jobs data means for ASX 200 shares appeared first on The Motley Fool Australia. –

A traveller dressed in colourful shirt and panama hat looking puzzled, indicating uncertainty in the travel share price

ASX 200 shares are off to a shaky start on Wednesday despite some positive economic indicators in recent days. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is trading 0.47% lower at 6,638.20 points with some big names heading lower.

Why are ASX 200 shares trending lower?

Financials and health care shares are trading lower this morning with the major banks all dragging on the index’s performance.

The Commonwealth Bank of Australia (ASX: CBA) share price is down 0.4% to $82.89 while CSL Limited (ASX: CSL) shares have slumped 1.6% to $280.97.

These are two of the biggest names that have contributed to Wednesday’s losses. This is despite oil prices reaching a 10-month high.

What was the good economic indicator?

According to an article in the Australian Financial Review (AFR), the jobs market is entering the new year with some significant momentum.

An Australia and New Zealand Banking Group Ltd (ASX: ANZ) Australian job advertisement series published on Tuesday showed a continued recovery in demand for Aussie workers. More than 159,000 vacant positions were advertised in December which was the highest in 18 months and 4.1% above pre-coronavirus levels in February 2020.

ASX 200 shares have slid this morning despite the positive leading indicator news from the ANZ survey. ANZ senior economist Catherine Birch was cautiously optimistic on the news, saying “we should see pretty solid employment gains in December and going into 2021.”

CommSec chief economist Craig James was quoted saying, “a healthier job market will support overall economic activity, confidence and spending.”

The latest ANZ job series survey could bode well for unemployment statistics due out later this month. That, in turn, could be good news for several ASX 200 shares as investors hope for the strong momentum seen in the fourth quarter of 2020 to continue into the new year.

Foolish takeaway

All eyes will be on the economic data due out in coming weeks to kickstart the new year. ASX 200 shares have had a soft start to the year with the index falling 0.7% since Monday.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post What strong jobs data means for ASX 200 shares appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!