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Australia’s Full-Time Employment Surges Most in Nearly 30 Years

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  • Australia’s Full-Time Employment Surges Most in Nearly 30 Years

Australian employment surged in March, underpinned by the biggest gain in full-time jobs in almost 30 years, as a recovering jobs market joined a spike in business conditions to suggest a stronger economy.

  • Employment rose 60,900 from February; economists forecast 20,000 gain
  • Jobless rate held at 5.9% as economists predicted, as more people searched for work
  • Full-time jobs soared by 74,500, the biggest increase since December 1987; part-time employment fell 13,600
  • Participation rate rose to 64.8% from 64.6%; economists forecast 64.6%
  • Aussie dollar rose on report, buying 75.68 U.S. cents at 12:45 p.m. in Sydney, compared with 75.39 before its release.

Big Picture

Signs of recovery in Australia’s labor market together with the best business conditions since 2008 suggest the Reserve Bank of Australia’s forecast of accelerating growth is on track. It also signals the central bank’s record-low cash rate of 1.5 percent since August appears to be encouraging investment and hiring by businesses outside the resources industry.

Still, Australia’s economy is split. The east coast cities of Sydney and Melbourne are investing in infrastructure, boosting jobs and experiencing population gains that have helped send house prices soaring. Elsewhere, particularly in the west and north where a mining investment boom has almost unwound, people have been leaving, unemployment has climbed and property prices have fallen.

Economist Takeaways

The surge in employment “should be taken with a pinch of salt,” said Paul Dales, chief economist for Australia at Capital Economics Ltd. “The fact that it was accompanied by a 64,900 leap in the size of the labor force suggests that the rise in employment has more to do with survey sampling issues than anything else.”

“It is a case of the trend is your friend. The seasonally adjusted job figures are clearly volatile,” said Craig James, a senior economist at the securities unit of Commonwealth Bank of Australia. “But the trend data smooths out the bumps and shows employment rising by 16,500 in March with the jobless rate at 5.8 percent. That seems to line up better with all the other economic indicators and surveys.”

“The RBA is concerned about the weak underbelly of the labor market, but today’s trend pick-up in full-time hours worked and employment provide some offset,” said Annette Beacher, head of Asia-Pacific research at TD Securities in Singapore. “Continued improvement in full-time employment trends is supportive for our November RBA rate hike call.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Continue to Slide: Drops Over 1% Amid Surging U.S. Stockpiles

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Crude Oil

Amidst growing concerns over surging U.S. stockpiles and indications of static output policies from major oil-producing nations, oil prices declined for a second consecutive day by 1% on Wednesday.

Brent crude oil, against which the Nigerian oil price is measured, shed 97 cents or 1.12% to $85.28 per barrel.

Similarly, U.S. West Texas Intermediate (WTI) crude slumped by 93 cents or a 1.14% fall to close at $80.69.

The recent downtrend in oil prices comes after they reached their highest level since October last week.

However, ongoing concerns regarding burgeoning U.S. crude inventories and uncertainties surrounding potential inaction by the OPEC+ group in their forthcoming technical meeting have exacerbated the downward momentum.

Market analysts attribute the decline to expectations of minimal adjustments to oil output policies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known collectively as OPEC+, until a full ministerial meeting scheduled for June.

In addition to concerns about excess supply, the market’s attention is also focused on the impending release of official government data on U.S. crude inventories, scheduled for Wednesday at 10:30 a.m. EDT (1430 GMT).

Analysts are keenly observing OPEC members for any signals of deviation from their production quotas, suggesting further volatility may lie ahead in the oil market.

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Energy

Nigeria Targets $5bn Investments in Oil and Gas Sector, Says Government

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Crude Oil - Investors King

Nigeria is setting its sights on attracting $5 billion worth of investments in its oil and gas sector, according to statements made by government officials during an oil and gas sector retreat in Abuja.

During the retreat organized by the Federal Ministry of Petroleum Resources, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, explained the importance of ramping up crude oil production and creating an environment conducive to attracting investments.

He highlighted the need to work closely with agencies like the Nigerian National Petroleum Company Limited (NNPCL) to achieve these goals.

Lokpobiri acknowledged the challenges posed by issues such as insecurity and pipeline vandalism but expressed confidence in the government’s ability to tackle them effectively.

He stressed the necessity of a globally competitive regulatory framework to encourage investment in the sector.

The minister’s remarks were echoed by Mele Kyari, the Group Chief Executive Officer of NNPCL, who spoke at the 2024 Strategic Women in Energy, Oil, and Gas Leadership Summit.

Kyari stressed the critical role of energy in driving economic growth and development and explained that Nigeria still faces challenges in providing stable electricity to its citizens.

Kyari outlined NNPCL’s vision for the future, which includes increasing crude oil production, expanding refining capacity, and growing the company’s retail network.

He highlighted the importance of leveraging Nigeria’s vast gas resources and optimizing dividend payouts to shareholders.

Overall, the government’s commitment to attracting $5 billion in investments reflects its determination to revitalize the oil and gas sector and drive economic growth in Nigeria.

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Commodities

Palm Oil Rebounds on Upbeat Malaysian Exports Amid Indonesian Supply Concerns

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Palm Oil - Investors King

Palm oil prices rebounded from a two-day decline on reports that Malaysian exports will be robust this month despite concerns over potential supply disruptions from Indonesia, the world’s largest palm oil exporter.

The market saw a significant surge as Malaysian export figures for the current month painted a promising picture.

Senior trader David Ng from IcebergX Sdn. in Kuala Lumpur attributed the morning’s gains to Malaysia’s strong export performance, with shipments climbing by a notable 14% during March 1-25 compared to the previous month.

Increased demand from key regions like Africa, India, and the Middle East contributed to this impressive growth, as reported by Intertek Testing Services.

However, amidst this positivity, investors are closely monitoring developments in Indonesia. The Indonesian government’s contemplation of revising its domestic market obligation policy, potentially linking it to production rather than exports, has stirred market concerns.

Edy Priyono, a deputy at the presidential staff office in Jakarta, indicated that this proposed shift aims to mitigate vulnerability to fluctuations in export demand.

Yet, it could potentially constrain supply availability from Indonesia in the future to stabilize domestic prices.

This uncertainty surrounding Indonesian policies has added a layer of complexity to palm oil market dynamics, prompting investors to react cautiously despite Malaysia’s promising export performance.

The prospect of Indonesian supply disruptions underscores the delicacy of global palm oil supply chains and their susceptibility to geopolitical and regulatory factors.

As the market navigates these developments, stakeholders remain attentive to both export data from Malaysia and policy shifts in Indonesia, recognizing their significant impact on palm oil prices and market stability.

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