Job ads up 1.8% in March, Turnbull to quit politics: Economy Roundup

Job advertisements have continued to increase as the economy recovers, with the latest figures from ANZ’s monthly survey showing an increase of 1.8% in March due to significant labour demand.

The total number of job advertisements grew to an average of 162,692 per week, up a seasonally adjusted 8% from the same period last year – the first sign of annual growth since July 2008.

Newspaper ads dropped 1%, despite a jump of 13.1% during the previous month, but are still 20.1% higher than this time last year. Internet advertisements grew by 2%, resulting in the first positive annual growth since August 2008.

Economist Warren Hogan said in a statement the increase was a solid effort, despite paling in comparison to last month’s 19.1% increase.

“[This month’s survey] suggests labour demand is strengthening in early 2010 and confirms the rapid improvement in economic conditions in Australia over the past six months,” Hogan said.

“This steady increase in labour demand is already translating into solid employment growth and reduced unemployment, even during the current period of relatively strong population and labour force growth.”

Additionally, Hogan said the unemployment rate is set to ease throughout the rest of this year and that official figures due this Thursday are expected to show a rise in employment of 12,000, resulting in the unemployment rate remaining steady at 5.3%.

He also said it is likely the Reserve Bank of Australia will lift the official interest rate this afternoon by 25 basis points to 4.25%.

Macarthur Coal shares have been placed in a trading halt pending an announcement on a $3.3 billion bid from Peabody Energy Corporation to acquire the company.

“Macarthur requests the trading halt to continue until the earlier of the commencement of normal trading on the second day trading day after the trading halt commenced and when Macarthur makes an announcement to the market,” the company said in a statement.

Last week Macarthur rejected a $3.3 billion takeover from the company, said shareholders will go ahead on a April 12 vote for a rival plan to takeover Gloucester Coal.

Also in the resources sector, American group INR is reportedly planning to list on the Australian sharemarket in a move that would expose the company to growing markets in China, India and other Asian regions.

The AFR has reported the float will have a market value of over $1 billion, and that chief executive Gary Rogliano has said the growth in Australia will be part of the company’s overall strategy.

It is understood the listing will take place during mid-year.

Shares higher after strong Wall Street results

The Australian sharemarket has opened higher after the four-day Easter weekend, backed by positive leads from Wall Street and good results in commodities markets.

The benchmark S&P/ASX200 index was up 41 points or 0.84% to 4949.1 at 12.00 AEST, while the Australian dollar opened higher to US92c.

Commonwealth Bank shares gained 0.1% to $56.83, while ANZ shares lost 0.2% to $25.23. Westpac rose 0.3% to $28.01, as NAB rose 0.7% to $27.83.

Lihir Gold has reportedly said some of its major shareholders have backed its rejection of a takeover bid worth $9.2 billion from Newcrest Mining.

As reported by The Australian, a source has said some of the shareholders have said the offer was insufficient and that none urged the company to accept the current offer. Newcrest has nine months before it can make a hostile play for the company.

In politics, former opposition leader Malcolm Turnbull has said he will not run for re-election in November this year, citing the removal of an emissions trading scheme from the official Liberal Party policy.

“I thank John Howard for giving me the opportunity to serve as Environment and Water Minister,” Turnbull said. “With his support I was able to ensure that for the first time in our history the interstate waters of the Murray Darling Basin were placed under national responsibility.

“However, I regret that another important reform begun during that time, the establishment of an emissions trading scheme, is no longer Liberal Party policy.”

Turnbull, who has formerly worked as the chairman and managing director of Goldman Sachs Australia, said he will return to the private sector.

“When I ceased to be leader of the opposition at the end of last year I resolved that I would not precipitate a by-election by resigning from Parliament,” he said. “However I did say that I would reflect carefully on whether I would run at the election this year and having done so I am making this announcement.”

US services sector grows at fastest pace in four years

In the US, stocks have risen on Wall Street due to strong economic data released from the Institute for Supply Management which shows the services sector grew at its fastest pace in nearly four years during March.

Additionally, future home sales also rose in February, giving investors hope that an economic recovery is finally on its way. The ISM said its service index grew in March for a third consecutive month to 55.4 points, above the 50-point level separating expansion from contraction.

On Wall Street, the Dow Jones Industrial Average gained 6.48 points, or 0.43%, to close at a new 18-month high at 10,973.55.