ASX 200 lifts to new record high as unemployment falls

Unemployment fell to 4.2% amid record-high female participation in the labour force last month.

A male ASX investor on the street wearing a grey suit clenches his fist and yells yes after seeing on his ipad that the Paladin share price is going up again today

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The S&P/ASX 200 Index (ASX: XJO) hit a fresh record high in lunchtime trading on Thursday, reaching 8,899.1 points, up 0.82%.

S&P/ASX All Ordinaries Index (ASX: XAO) shares also set a new record at 9,173.2 points, up 0.77%.

The local bourse is trading higher due to a strong session on Wall Street overnight and lower Aussie unemployment data released today.

Australian unemployment falls in July

The Bureau of Statistics (ABS) reported a 0.1% fall in unemployment amid record-high female participation in the labour force in July.

The unemployment rate fell to 4.2% in seasonally adjusted terms last month.

Sean Crick, ABS head of labour statistics, said:

With employment rising by 25,000 people and the number of unemployed decreasing by 10,000 people, the unemployment rate fell by 0.1 percentage points to 4.2 per cent in July.

ASX 200 shares are rising, given that lower unemployment will add to the case for another interest rate cut from the Reserve Bank (RBA).

The RBA cut interest rates by 0.25% on Tuesday.

Jobs growth was driven by full-time employment. Female full-time workers rose by 40,000, while male full-time workers rose by 20,000.

The female employment-to-population ratio and participation rate reached new historical highs of 60.9% and 63.5%, respectively.

The ABS also reported that average weekly ordinary time earnings for full-time adults had surpassed $2,000 per week for the first time.

What happened on Wall Street overnight?

The S&P 500 Index (SP: .INX) reached a new record high of 6,480.28 points before closing at 6,466.58 points, up 0.32%.

Nasdaq Composite Index (NASDAQ: .IXIC) shares also hit a new peak of 21,803.75 points before closing at 21,713.14 points, up 0.14%.

The Dow Jones Industrial Average Index (DJX: .DJI), which is different to other indexes, rose 1.04% to 44,922.27 points.

Wall Street surged after July inflation data showed a 0.2%, which Reuters reported was broadly in line with expectations.

This has raised expectations that the Federal Reserve will cut interest rates next month.

Katherine Bordlemay, co-head of client portfolio management, fundamental equities at Goldman Sachs Asset Management, said:

The CPI data is supportive for equities overall, getting some good news with the Fed looking more on track to cut in September and potentially more transitory inflation.

Which ASX 200 shares are leading the market on Thursday?

Westpac Banking Corp (ASX: WBC) shares are leading the ASX 200 today after the bank released its 3Q FY25 update.

Westpac reported an unaudited quarterly statutory net profit after tax (NPAT) of $1.9 billion, up 14% on the 1H FY25 average.

Temple & Webster Group Ltd (ASX: TPW) shares are lifting after the company released its full-year FY25 results and a trading update.

The online furniture retailer revealed a staggering 533% lift in net profit to $11.3 million for the financial year, up from $1.8 million in FY24.

The Origin Energy Ltd (ASX: ORG) share price is also higher after the company released its full-year FY25 results and FY26 guidance.

Origin delivered a statutory profit of $1,481 million, up from $1,397 million last year, with underlying profit rising to $1,490 million.

Top 5 risers of the day

ASX 200 shareLast price Change today
Westpac Banking Corp Ltd (ASX: WBC)$36.126.5%
Temple & Webster Group Ltd (ASX: TPW)$27.756.5%
Origin Energy Ltd (ASX: ORG)$12.424.9%
Pro Medicus Ltd (ASX: PME)$309.944.3%
Arena REIT (ASX: ARF)$3.8753.9%

Source: asx.com.au at time of writing

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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