MPC Morning Call 12th January 2026 – Stocks reach record highs despite weakening Labour market
Stocks finished at fresh records despite the weakening labour market numbers in the US, with chip stocks and MAG7 supporting the market.
WATCH ON YOUTUBE MPC Morning Call 12 th January 2026 – Stocks reach record highs despite weakening Labour market Stocks finished at fresh records despite the weakening labour market numbers in the US, with chip stocks and MAG7 supporting the market. U.S. job growth slowed in December, with 50,000 new positions added, down from 56,000 in November and below economists’ expectations of 66,000. Revisions to previous months’ data showed weaker employment than initially thought, with a combined 76,000 fewer jobs in October and November due to updated business and government reports. Despite this softer headline figure, the unemployment rate edged lower to 4.4%, signalling some labour market resilience. The household survey painted a stronger picture, showing employment rising and unemployment declining even as labour force participation eased. Economists at Jefferies regarded the data as mixed but suggested it does not strongly justify an imminent rate cut from the Federal Reserve. They noted that upcoming employment and inflation data in the first quarter will be key to determining the Fed’s next move. While growth appears to be moderating, the continued decline in joblessness and stable hiring levels point toward an underlying economic strength that could sustain moderate expansion without sparking higher inflation. In the markets, Intel’s shares jumped 10% after President Donald Trump highlighted the government’s profitable stake in the company, claiming tens of billions in returns over four months. Homebuilder stocks also rallied as mortgage rates fell to three-year lows following Trump’s proposal for a $200 billion government purchase of mortgage-backed securities. Meanwhile, the Supreme Court delayed its much-anticipated ruling on Trump’s tariff policy, which could carry major fiscal implications — potentially requiring $150 billion in refunds to importers if the tariffs are overturned. Government Bond Yields Commodities, Energy & FX ASX Overnight: SPI 8714 (+0.33%) The Day Ahead: the local market should be buoyant based on commodity and energy prices. Interest rate sensitive sectors may catch a bid as weak household spending numbers releases pressure on the RBA. Corporate news Supermarket duopoly, Coles and Woolworths may see some pressure as the ACCC chief said it expects to launch a lawsuit for price gouging. Health insurers also could see some pressure as insurers warned against the AU Govts private hospital funding proposal
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