Australia’s share market has fallen for a fourth time in 5 periods as issues about China’s economic system and the way forward for US rate of interest hikes bitter sentiment.
The benchmark S&P/ASX200 index on Thursday fell 49.2 factors, or 0.68 per cent, to 7,146.0.
The broader All Ordinaries dropped 47.4 factors, or 0.64 per cent, to 7,364.4.
The ASX200 closed at its lowest stage since July 12 and has dropped 2.6 per cent since final Friday’s shut, placing it on observe for its worst weekly losses since a 3.9 per cent drop just a little over a yr in the past.
IG market analyst Tony Sycamore instructed AAP the ASX had been hit by a “triple whammy” involving issues about China’s weakening economic system, rising bond yields within the United States and the weakening Australian greenback, which hit a recent nine-month low on Thursday.
Plenty of offshore traders have their trillion-dollar portfolios based mostly in US {dollars}, Mr Sycamore famous.
“And what that means is they’re basically losing money on their Australian stock portfolios on two fronts, on the fact that the currency is undermining their investment and the fact that the ASX200 has had a really tough August,” he mentioned.
“So that’s a big part of the picture.”
The Australian greenback dropped below 64 US cents for the primary time since November 2022 after the Australian Bureau of Statistics reported the unemployment fee rose greater than anticipated in July, climbing from 3.5 per cent to three.7 per cent.
While the college holidays that month could have contributed to a weakening within the labour market, some economists noticed the readout as additional affirmation the Reserve Bank’s rate-hiking cycle was at an finish.
“For the RBA, which has paused for the last two months, today’s data will be another reason to stay on the sidelines,” wrote Royal Bank of Canada’s Sydney-based chief economist Su-Lin Ong.
Eight of the ASX’s 11 sectors completed decrease, with industrials, client staples, well being care and telecommunications down a couple of per cent.
Telstra dropped 2.8 per cent to $4.13 after reporting its full-year revenue was up 13.1 per cent to $2.1 billion.
Origin Energy rose 1.8 per cent to $8.51 because the utility reported it had swung to a full-year web revenue of $1.06 billion, from a lack of $1.43 billion the earlier yr, because it benefited from excessive oil and fuel costs.
All of the massive 4 banks have been decrease, with Westpac falling 1.9 per cent to $21.36, NAB retreating 2.1 per cent to $27.81, ANZ dropping 0.9 per cent to $24.59 and CBA dipping 0.1 per cent to $99.65.
Among the iron ore giants, BHP was flat at $43.11, Fortescue Metals was down 0.3 per cent to $20.13 and Rio Tinto was up 1.1 per cent to $104.77.
The Australian greenback was shopping for 63.99 US cents, from 64.64 US cents at Wednesday’s shut, and down from over 68 US cents a month in the past.
ON THE ASX:
* The S&P/ASX200 index completed Thursday down 49.2 factors, or 0.68 per cent, at 7,146.0.
* The All Ordinaries dropped 47.4 factors, or 0.64 per cent, to 7,364.4
CURRENCY SNAPSHOT:
One Australian greenback buys:
* 64.00 US cents, from 64.64 US cents at Wednesday’s ASX shut
* 93.61 Japanese yen, from 94.07 Japanese yen
* 58.82 Euro cents, 59.20 Euro cents
* 50.26 British pence, from 50.79 pence
* 107.97 NZ cents, from 108.15 NZ cents.
Source: www.perthnow.com.au
