Australian sharemarket sinks almost $40bn as strong US jobs data spooks investors

Australia’s sharemarket has sunk almost $40bn and is now on track for its worst month since September 2022, as strong US jobs data sent a shiver through the market.

The benchmark ASX 200 dropped 136.20 points, or 1.59 per cent, to 8416.50 while the broader All Ordinaries lost 147.70 points, or 1.67 per cent, to 8686.30.

Australia’s sharemarket has now fallen back to its May levels.

The Aussie dollar appreciated slightly and is now buying 64.51 US cents.

On an overall negative day of trading, 10 of the 11 sectors finished lower, led by materials stocks which slumped 4.01 per cent as a sector.

Market heavyweight BHP dropped 3.24 per cent to $40.37, Fortescue slumped 5.47 per cent to $20.06 and Rio Tinto fell 3.23 per cent to $127.85.

Energy shares also fell 2.98 per cent while consumer discretionary traded 1.05 per cent lower.

Woodside Energy gave up 2.72 per cent to $25.41, Santos slumped 3.02 per cent to $6.43 and Ampol flopped 1.86 per cent to $30.66.

CBA eked out a tiny 0.04 per cent gain to $153.06 to be the only major bank to rise on Friday.

Shares in Westpac fell 1.64 per cent to $37.13, NAB dropped 0.78 per cent to $40.56 and ANZ underperformed down 1.52 per cent to $34.90.

IG market analyst Tony Sycamore said November’s market slump put the ASX on track for its worst month in September 2022.

“The heavyweight ASX200 Financial sector has led the November rout, dropping 7.75 per cent this month, poised for its worst month since June 2022 (-11.87 per cent),” he said.

“Clear question marks circling now around the extent of any Santa rally and which sector will lead it, with Christmas now just under five weeks away.”

AMP deputy chief economist Diana Mousina said a deluge of US data since the government reopened had spooked both domestic and international investors.

“Recent sharemarket falls reflect stretched valuations, risks around US tariffs and the softening US jobs market,” she said.

“But with Trump pivoting towards more market and consumer friendly policies and central banks, including the Fed and RBA, still likely to cut rates further, shares are likely to provide reasonable gains on a six to 12 month horizon.”

Australia’s sharemarket followed the US and dropped after US job figures showed 119,000 jobs were made in the month of September against expectations of 50,000.

This lowers the chance of an interest rate cut in December.

In company news, WiseTech shares rose 2.41 per cent to $65.76 following the businesses annual general meeting where embattled chief executive Richard White was brought to tears as he apologised to shareholders for previous wrongdoings.

The business received its first strike as shareholders voted against the company’s executive pay.

Webjet Group shares traded flat after private equity group BGH Capital upped its offer to 91 cents per share.

Online retailer Kogan shares added 0.67 per cent to $3.01 after it told shareholders at its annual general meeting that in the first four months of financial year 2026, earnings before interest, taxes, depreciation and amortisation was $10.1m while margins rose to 6.5 per cent.