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Market Update: Unemployment increases slightly | 18 July 2024

ASX News, Market Summary
18 July 2024 13:23 (AEDT)

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The ASX200 is drifting lower, down 0.33%. Commonwealth Bank and the miners are slightly down in lunchtime trade.

The Australian Bureau of Statistics (ABS) has released the latest Australian unemployment data, reflecting a headline rate of 4.1%. 

The monthly data reflected an increase of less than 0.1% in June. The ASX200 dipped slightly upon the release of the jobs numbers.

The Information Technology sector has been aggressively sold off, down 2.85%. The retreat follows the NASDAQ’s worst day in two years, as market darling Nvidia shed 6.6%.

Company News

Dominos Pizza (ASX:DMP) is down 9.6% as the market reacted unfavourably to store closures in Japan and France. This follows the company’s complete shutdown of Danish operations.

Dominos Pizza is trading at $32.63.

Fortescue Metals Group (ASX:FMG) is down 1% as the company announced it would cut 700 administration jobs.

The company is restructuring, with Fortescue Future Industries being consolidated back into FMG and renamed Fortescue One.

FMG is trading at $22.15.

Finally, buy now pay later company Zip Co (ASX:ZIP) is up 10% after completing a $217 million capital raising to institutional investors at a $1.56 per share. Proceeds will fund early repayment of Zip’s existing corporate debt facility.

The company will also offer shareholders the chance to participate in the raising of an additional $50 million.

Zip is trading at $1.76.

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