FEAR & GREED | Business News Rate rise in a fortnight?; pressure on Ley to quit; Trump backs down on Greenland
9 snips
Jan 22, 2026 A surprise drop in the unemployment rate hints at a possible interest rate hike soon. Opposition leader Sussan Ley faces increasing pressure after the National Party's exit from the Coalition. In international news, Trump reverses his stance on Greenland and tariffs against Europe. Meanwhile, the IPO market in Australia shows signs of recovery after a poor previous year, and scientists unveil a stunning 68,000-year-old cave painting, shedding light on ancient human creativity.
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Tighter Jobs Market Raises Hike Odds
- A surprise fall in unemployment tightened the labour market and raised the odds of an imminent rate hike.
- Markets now price a 50% chance of a hike next month and a 100% chance by May based on stronger jobs data.
Youth, Hours And Underemployment Drove The Drop
- The unemployment fall was driven by jumps in hours worked, lower underemployment and more 15–24-year-olds entering work.
- That pattern suggests seasonal and structural factors pushed employment growth rather than a sudden economic boom.
Markets Reacted Strongly To Jobs Surprise
- Strong jobs data and rate-hike expectations affected markets: banks rallied while miners lagged.
- The Aussie hit its highest since Oct 2024, briefly topping 68 US cents on the news.