ASX rallies 1.65%, GDP undershoots expectations

The news: The Australian sharemarket had its best day in more than a month, the benchmark ASX 200 gaining 1.65% to 7,178.40 and the All Ordinaries also lifting 1.61%. Australian GDP undershot expectations and Oil prices continued their declines and sank to a nearly five-month lows. Overnight US jobs data came in lower than expected, suggesting a long-awaited softening in the States' job market, boosting investor bets the Fed is done hiking rates.

The numbers: The Aussie dollar is buying 65.9 US cents after rebounding from around 65.5 US cents this morning. All 11 ASX sectors finished in the green, with real estate stocks surging 3.4% led by Mirvac (+4.7%), Lendlease (4.3%) and Charter Hall (+4.1%). Brent crude futures rose one cent to USD77.21 a barrel and West Texas crude lost four cents to trade at $72.28 a barrel. This morning both benchmarks closed at their lowest levels since 6 July.

The context: Australia's October GDP growth came in below expectations at 0.2%, as the economy continues to slow. Overnight US job openings came in lower than expected, indicating the jobs market in the States could finally be starting to loosen, increasing the likelihood the Fed is done raising interest rates. Tonight UK construction purchasing managers index data