Australian Shares Plummet as Oil Prices Surge and Unemployment Hits Five-Year High

The Australian share market declined on Thursday due to higher oil prices and a strong US economy report that sent bond yields sharply higher.

The S&P/ASX 200 fell 78.8 points, or 0.9%, at 8686.50 by midday AEST after closing flat the previous session.

Australia's unemployment rate rose to 4.6% in August, its highest level since the COVID-19 pandemic disruptions, but it may not be enough to halt further interest rate hikes from the Reserve Bank.

The Reserve Bank governor Michele Bullock said an unemployment rate 'between 4.5 and 5' per cent would probably be needed to ease inflationary pressures.