Flat ASX Ahead as Fed Hike Odds Rise on Strong US Jobs Data

The Australian sharemarket is expected to open flat today after Wall Street closed lower on Friday. Stronger-than-expected US jobs growth has fuelled expectations that the Federal Reserve could raise interest rates as soon as this month.

The unemployment rate in the US held steady at 4.1%, while the economy added 162,000 jobs in August, exceeding economists' predictions of a 56,000 increase. This stronger-than-expected growth has strengthened expectations that the Federal Reserve could raise interest rates at its upcoming meeting on September 16.

The larger-than-expected increase in nonfarm payrolls reflected a rebound in leisure and hospitality employment following two consecutive monthly declines. Economists estimate the so-called break-even rate is now between zero and 50,000 jobs a month, according to Reuters.