The S&P/ASX 200 Index (ASX: XJO) is shooting the lights out today.
At 11.30am AEST, the benchmark Aussie index was up 1.5%.
ASX 200 investors kicked off Thursday on a very positive note following the latest inflation data out of the United States.
According to the US Bureau of Labor Statistics, the core CPI consumer price index increased by 0.2% in December, down from the 0.3% rise notched over the previous four months.
The US Federal Reserve closely monitors core CPI, which excludes volatile items like energy and food. And the lower than expected reading for December has upped the odds of an early interest rate cut from the Fed in 2025, perhaps as soon as March.
The strong morning gains posted on the ASX 200 today mirror the positive reaction of US investors to the inflation print, with the S&P 500 Index (SP: .INX) closing up 1.8% and the Nasdaq Composite Index (NASDAQ: .IXIC) gaining 2.5% overnight.
Also at 11.30am, Aussie investors were informed of the latest jobs data for the month of December.
Here's what we just learned about the latest Aussie unemployment figures.
ASX 200 holds gains on Australia's jobs data
The ASX 200 managed to hold onto its strong morning gains, with the latest batch of labour data matching consensus economist expectations.
According to the Australian Bureau of Statistics (ABS), the unemployment rate in Australia rose by 0.1%% in December to 4.0%.
"With employment rising by 56,000 people and the number of unemployed increasing by 10,000 people, the unemployment rate rose to 4.0%," Bjorn Jarvis, ABS head of labour statistics, said.
Elaborating on the data, Jarvis said:
The number of employed people grew by 0.4% in December 2024, slightly higher than the average monthly rise of 0.3% during 2024. It was also higher than the average monthly population growth of 0.2% over the year.
The employment-to-population ratio rose 0.1% to a new record of 64.5%. This was 0.5% higher than a year ago and 2.3% higher than before the COVID-19 pandemic.
Jarvis noted that the rise in the number of Aussies employed and unemployed was accompanied by a further increase in the participation rate,
"The participation rate rose 0.2% to a record high of 67.1% in December. This was 0.5% higher than a year ago, and 1.6% higher than March 2020."
With today's intraday gains factored in, the ASX 200 is up 2.2% so far in 2025, with the benchmark Aussie index up 12.5% since this time last year.
