Tag: ASX


‘Stocks and bonds say we’re doomed’ as share rout worsens, Aussie dollar slides


Australia

Australia’s share market has joined Wall Street in a correction, falling more than 10 per cent since their recent record highs, while the Australian dollar plumbed a fresh 11-year low.

Key points:

  • The benchmark Australian ASX 200 share index closed down 3.25 per cent
  • ASX has had a 10 per cent “correction” in the space of just a week — the biggest weekly decline since the global financial crisis
  • The value of listed companies in Australia is down more than $240 billion from record highs last Thursday

In the space of just a week, the ASX 200 has gone from a record closing high of 7,162 last Thursday to a low of 6,427 in today’s session.

At the close, the ASX 200 was down 3.25 per cent at 6,441 taking the losses to more than 10 per cent since that record, marking the beginning of what traders call a “correction”.

To enter a “crash” or “bear market” share prices will need to lose another 10 per cent from there.

Looking at the broader market, represented by the All Ordinaries index, Australian shares have lost more than $240 billion in value since their highs last week.

It is the biggest weekly drop for both Australian and US share markets since October 2008, during the peak of the global financial crisis market chaos.

The Australian dollar has also again plumbed financial crisis depths, falling to a fresh 11-year low of 65.17 US cents during afternoon trade.

Coronavirus not the only cause of falling Aussie dollar
Interest rates, trade tensions and the recent bushfires are other factors contributing to the fall of the Australian dollar.

At various points during the session the market has attempted to bounce back, however percentage falls since the open remained in the high-2 to low-3 per cent range as buyers have been in short supply.

All sectors of the market finished in the red, but technology, mining, industrial and energy stocks were the worst hit.

The biggest falls among the top 200 companies were Harvey Norman (-14.1 per cent), Gold Road Resources (-14 per cent) and Clinuvel Pharmaceuticals (-10.8 per cent).

A late surge in some firms left 10 out of the top 200 companies in the black by the end of the day.

‘The direction ahead for the economy is straight down’

Wall Street’s main indexes plunged more than 4 per cent overnight Thursday, their worst trading session since 2011.

The major share indices have slumped more than 12 per cent from recent highs confirming US shares are deep into a correction and potentially heading for a bear market.

Global shares are now at a four-month low, having retreated from record highs at a rapid pace.

The indexes have been hit by their steepest weekly pullback since the 2008 global financial crisis, as new coronavirus infections reported around the world surpassed those in mainland China.

While shares are falling, demand for government bonds is at record highs, pushing interest rates on them to record lows.

The yield on 10-year Australian Government bonds was just 0.82 per cent, while returns on 10-year US Treasuries were below 1.25 per cent.

“Stocks and bonds say we’re doomed,” Chris Rupkey, the chief financial economist for MUFG Union Bank, told Bloomberg.

“Anyone who has a better idea for what lies ahead please let us know because right now the direction ahead for the economy is straight down.”

Debt kills in coronavirus contagion
Coronavirus looks set to cause deep global economic disruption, and those companies that have binged on cheap debt are the ones least likely to survive the crisis, writes Ian Verrender.

OANDA’s senior market analyst for the Asia-Pacific region, Jeffrey Halley, said that while much remains unknown, traders have finally begun to appreciate the scale of global economic disruption that is imminent.

“What is clear, is the potential supply and demand shock that may be about to sweep the global economy,” he warned in a note.

“That likely justifies the equity sell-off of this week with a harsh reassessment of delusional valuations in some cases.”

Mr Halley said that while central bank rate cuts and money printing may help somewhat on the demand side, they would do nothing to avert disruptions to the supply of goods and services.

“If global supply chains start freezing up, due to a lack of materials or credit, or both, no amount of rate-cutting will unlock that,” he argued.

“If SME’s [small to medium enterprises] can’t get paid for their invoices, or pay theirs, or secure raw materials, or transport goods, the net effect is shuttered businesses and job losses.”

‘It’s becoming more global’

CommSec market analyst Steven Daghlian said that the falls have been exacerbated because markets were previously so exuberant.

“We had quite a strong start to 2020, and 2019 was actually the best year for the share market in a decade when we were up about 20 per cent, so we are coming off those high levels and that perhaps is making these losses worse than they would’ve been otherwise,” he told ABC News.

“This is obviously a very different situation than the global financial crisis and back in October 2008 … the Aussie market fell in the order of 15.5 per cent in one week.”

US traders were particularly rattled by the Centres for Disease Control and Prevention confirming a COVID-19 infection in California in a person who apparently had no relevant travel history or exposure to another known patient.

What you need to know
Here’s a rundown of all the facts about coronavirus, and how you can make sure you’re protected.

“It’s not a China thing, it’s becoming more global … in terms of the spread of the virus and its economic impact,” Willie Delwiche, investment strategist at Robert W Baird in Milwaukee told Reuters.

“There’s a lot of uncertainty right now about where that impact lands … it’s also possible that forecasts are over-reacting to the downside.”

‘We haven’t yet hit peak panic’

However, AMP Capital portfolio manager Dermot Ryan said that there is likely to be further panic and downside before markets settle down.

“As so far this has all been driven by offshore infection rates, further escalations over the weekend may see another leg down next week,” he wrote in a note.

“We think the market is late reacting to coronavirus which has been spreading across borders for over a week.

Delayed coronavirus reaction
Share markets have roared blithely higher as the coronavirus outbreak worsened in China, but that complacency appears to have been punctured in the biggest sell-off for two years, writes Ian Verrender.

“We haven’t yet hit peak panic and there may be another leg down for markets.”

Mr Ryan said the spread of coronavirus through Europe and North America will cause further stress on markets, as will the increasingly likely declaration of a pandemic, which he expects from the World Health Organisation (WHO) this weekend.

However, he said the market mayhem also presented opportunities for calm investors.

“Bottom line is we are probably not at peak panic yet, but investors should start thinking about what they would like to add to their portfolios as opportunities present themselves,” Mr Ryan added.

By the close, both the S&P 500 and Dow Jones Industrial Average had slumped 4.4 per cent, while the tech-heavy Nasdaq fell even further, plunging by 4.6 per cent.

European markets had also dropped sharply earlier in the session, with the EuroStoxx 50 off 3.4 per cent and London’s FTSE 100 down 3.5 per cent.


Video: How coronavirus sparked a global emergency

(Four Corners)

More on the coronavirus outbreak:

Source: https://www.abc.net.au/news


ASX trades higher as Wall St recovers from coronavirus sell-off


Australia

Australian shares have edged moderately higher, after bargain-hunting investors shrugged off coronavirus worries to drive a strong Wall Street recovery.

Market snapshot at 8:05am (AEDT):

  • ASX SPI futures flat at 6,856, ASX 200 (Monday’s close) -1.3pc at 6,923
  • AUD: 66.9 US cents, 51.48 British pence, 60.48 Euro cents, 72.71 Japanese yen, $NZ1.035
  • US: Dow Jones +0.5pc at 28,400, S&P 500 +0.7pc at 3,249, Nasdaq +1.3pc at 9,273
  • Europe: FTSE 100 +0.6pc at 7,326, DAX +0.5pc at 13,045, CAC +0.5pc at 5,833, Euro Stoxx 50 +0.6pc at 3,662
  • Commodities: Brent crude -4.2pc at $US54.24/barrel, spot gold -0.9pc at $US1,576.32/ounce, iron ore -5.4pc at $US80.38/tonne

By 2:15pm (AEDT), the ASX 200 index had risen by 0.5 per cent to 6,956 points.

It came after the local bourse experienced its second-worst trading day since the year began.

The worst performing stocks included Origin Energy (-3.4pc), Oil Search (-2pc) and Cooper Energy (-1.4pc) as utilities and energy stocks were hit hard by tumbling oil prices.

Consumer stocks were among the best performers including Harvey Norman (+7.3pc), JB Hi-Fi (+5pc) and Webjet (+3.2pc).

Meanwhile, the Australian dollar was steady at 66.9 US cents, which is near an 11-year low.

Buying the dip

Global markets fell sharply last week over worries about the rapidly spreading coronavirus and its impact on the world economy.

However, those concerns were not evident on US markets overnight.

‘Global health emergency’
The WHO has declared the coronavirus outbreak a public health emergency — here’s what that means.

The Dow Jones index closed 144 points (or 0.5pc) higher at 28,400 points. But the industrial-skewed index has some way to go before recovering from its 600-point drop last Friday.

The benchmark S&P 500 and tech-heavy Nasdaq indices lifted by 0.7 and 1.3 per cent respectively.

“Traders are looking for value where they can,” said Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto.

“A large part of what we’re seeing in the market today is bargain-hunting in anticipation of a return to stimulus from the Chinese Government.”

Helping the mood on US markets was a decision by China’s central bank to inject 1.2 trillion yuan ($260 billion) of liquidity into its market via reverse repurchasing agreements.

But the Shanghai Composite nonetheless plunged by 7.7 per cent (or $628 billion) yesterday — its first day of trading since China closed equity, currency and bond markets on January 23 for the Lunar New Year, a holiday that was extended because of coronavirus.

Wall Street also recovered thanks to surging technology share prices and a surprise rebound in US factory activity.

Manufacturing expanded in January after five straight months of contraction, according to figures from the Institute of Supply Management, indicating that a slump in business investment may have bottomed out.

The ISM said its index of national factory activity increased to a reading of 50.9 last month, the highest level since July. A reading above 50 indicates expansion in the manufacturing sector.

A rebound in business investment is critical to keeping the longest US economic expansion in history, now in its 11th year, on track amid signs of fatigue in consumer spending

Commodities slump

Spot gold slipped 0.8 per cent to $US1,576.16 an ounce, following a strong performance in January.

From Wuhan to Australia
The deadly coronavirus is spreading across the globe, with no end in sight — here is a timeline of key events so far and what to expect next.

“Gold prices slipped as a stronger US dollar and higher equity markets saw investor appetite wane,” ANZ analyst Rahul Khare said.

“There are fears that physical demand is also being impacted by the virus, with retail coin and jewellery demand most certainly taking.”

Iron ore prices also slumped 8.3 per cent to $US80.38 per tonne.

“Fears remains that [Chinese] construction activity will be severely impacted as provinces extend holidays and travel restrictions remain in place,” Mr Khare said.

In addition, oil prices fell sharply to a 13-month low as the coronavirus outbreak curtailed Chinese demand, which may spark potential supply cuts by the Organisation of the Petroleum Exporting Countries (OPEC) and its allies.

Brent crude lost 4 per cent to $US54.35 per barrel.

Oil has also dipped into bear-market territory, having dropped by more than 20 per cent from recent highs.

Independent refineries in China’s Shandong province, which collectively import about a fifth of the nation’s crude, cut output by 30 to 50 per cent in a little more than a week, executives and analysts told Reuters.

ABC/Reuters

Source: https://www.abc.net.au/news


Aussie dollar sinks as volatile Wall Street rebounds despite coronavirus fears


Australia

Australian shares are trading higher as investors shrugged off the coronavirus’ potential economic impact — despite the World Health Organisation (WHO) declaring the outbreak a global health emergency.

Market snapshot at 8:05am (AEDT):

  • ASX SPI futures +0.5pc at 6,976, ASX 200 (Thursday’s close) -0.3pc at 7,008
  • AUD: 67.2 US cents, 51.32 British pence, 60.9 Euro cents, 73.2 Japanese yen, $NZ1.035
  • US: Dow Jones +0.4pc at 28,859, S&P 500 +0.3pc at 3,284, Nasdaq +0.3pc at 9,299
  • Europe: FTSE 100 -1.4pc at 7,382, DAX -1.4pc at 13,157, CAC -1.4pc at 5,872, Euro Stoxx 50 -1.2pc at 3,691
  • Commodities: Brent crude -1.4pc at $US58.99/barrel, spot gold -0.2pc at $US1,573.91/ounce

By 12:25pm (AEDT), the ASX 200 index had lifted by 0.5 per cent to 7,044 points, with every sector trading higher.

Healthcare and information technology were the best-performing sectors, boosted by Avita Medical (+6.6pc), Resmed (+4.6pc) and investment services provider Link Administration Holdings (+9.7pc).

Link’s share price surged after the company revealed it would take over a European non-bank lender, Pepper Group, for up to 200 million euro ($322m).

On the flipside, the weakest performers were gold stocks, including Gold Road Resources, Silver Lake Resources and Newcrest Mining, which were down between 2.2 and 4.5 per cent.

Meanwhile, the Australian dollar briefly sank below 67 US cents overnight, its lowest value since early October.

The local currency has since lifted back to 67.2 US cents.

It had also dropped sharply against the UK’s sterling (-1.1pc), euro (-0.8pc) and Japanese yen (-0.9pc) at its worst.

The British pound jumped after the Bank of England left interest rates unchanged at 0.75 per cent — in the final policy meeting chaired by BoE governor Mark Carney before he steps down.

There was a 50-50 chance that the central bank would cut rates, according to market pricing.

It also happens to be the day on which Brexit is finally happening, as the UK nears its final hours as a member of the European Union.

Last minute comeback

The local market is following a positive, but volatile, lead from Wall Street.

US markets spent most of their day in the red, but erased all their losses in the last few minutes of trade — after WHO declared the global health emergency.

‘Global health emergency’
The WHO has declared the coronavirus outbreak a public health emergency — here’s what that means.

The Dow Jones closed 125 points higher (+0.4pc) — a significant recovery considering the industrial-skewed index had fallen by as much as 244 points earlier in the session.

The benchmark S&P 500 and Nasdaq gained 0.3 per cent each, also rebounding from the worst of their losses.

This was despite the release of official figures showing that the US economy missed the Trump administration’s goal of 3 per cent growth for the second year in a row.

It was also America’s slowest annual growth in three years (in 2019) as the slump in business investment deepened amid its damaging trade wars — particularly with China.

Gross domestic product (GDP) grew by 2.3 per cent last year, according to the US Commerce Department.

It suggests the White House and Republicans’ massive $US1.5 trillion corporate tax cuts only provided the US economy with a temporary boost.

European markets ended their session lower with the benchmark indices of London, Frankfurt and Paris down 1.4 per cent each.

Brent crude dropped 1.7 per cent to $US58.78 per barrel on concerns that the coronavirus will lead to slower demand for oil from China.

Facebook plummeted by 6.1 per cent to $US209.53 per share after the social media company warned of slowing growth as its business matured, in addition to reporting a surge in quarterly expenses.

Meanwhile, spot gold lifted by 0.1 per cent to $US1,578 an ounce as virus fears lingered on the minds of investors seeking safe haven assets.

Source: https://www.abc.net.au/news


ASX bounces back from coronavirus sell-off, but Treasury Wine walloped


Australia

Australian shares are recovering some of Tuesday’s heavy losses as overseas investors took a slightly less pessimistic view of China’s coronavirus outbreak and its economic fallout.

Key points:

  • ASX 200 index is up 0.6 per cent at 7,038
  • The gains are less than half of yesterday’s 1.4 per cent slide
  • Wall Street’s benchmark S&P 500 index had a stronger 1 per cent rise overnight

The benchmark ASX 200 index closed up 0.5 per cent at 7,031 — though the local market still has some way to go before clawing back yesterday’s 1.4 per cent loss, its sharpest fall since the year began.

Around the region, Tokyo’s Nikkei was also 0.7 per cent higher by 4:25pm (AEDT) but Hong Kong’s Hang Seng had dropped 2.3 per cent, having been closed for Lunar New Year during recent negative trading days.

Many of the sectors that were hardest hit yesterday — such as airlines, travel, entertainment and retail — have been posting solid gains today.

However, Treasury Wine Estates backed up a 5.8 per cent coronavirus-related fall yesterday, with a 25.1 per cent slump today, as it announced a significant downgrade to its forecast profit growth.

The company said difficulties in the North American market, which accounts for about 40 per cent of its sales, would lead to earnings growth of 5-10 per cent for 2020, down from a previous forecast of 15-20 per cent.

Treasury is also facing higher production costs as bushfires and drought wiped out a significant part of Australia’s grape crop and the company’s earnings downgrade did not include any forecast on the potential Chinese earnings hit from coronavirus.

The company’s shares closed at $12.50 — their lowest level in around two-and-a-half years.

Wall Street rebounded (somewhat) from the previous day’s heavy sell-off, which saw the blue-chip Dow Jones index tumble by 450 points — its worst trading day in four months.

The Dow closed up 187 points, or 0.6 per cent, at 28,763.

The benchmark S&P 500 and tech-heavy Nasdaq lifted by 1 and 1.4 per cent respectively.

Market snapshot at 9:15am (AEDT):

  • ASX SPI futures +0.5pc at 6,977, ASX 200 (Friday’s close) 6,995
  • AUD: 67.61 US cents, 51.89 British pence, 61.34 Euro cents, 73.80 Japanese yen, $NZ1.033
  • US: Dow Jones +0.7pc at 28,723, S&P 500 +1pc at 3,276, Nasdaq +1.4pc at 9,270
  • Europe: FTSE 100 +0.9pc at 7,481, DAX +0.9pc at 13,324, CAC +1.1pc at 5,926, Euro Stoxx 50 +1.1pc at 3,719
  • Commodities: Brent crude +1.2pc at $US60.02/barrel, spot gold flat at $US1,566.81/ounce

Pepperstone’s head of research Chris Weston does not think global markets have seen the last of their coronavirus jitters yet.

“It’s been a session where traders have focused less on the coronavirus (2019-nCov) and more on solid US economics,” he wrote in his morning note.

“I still sit in the camp that there is far more to play out in the 2019-nCov scare, and the impact on Chinese economics will be real.

“It’s the duration of the scare which will dictate confidence and the draw on discretionary spending, although most believe the authorities will meet any worsening of economics with a determined fiscal and monetary response.”

Earnings reporting season is gathering pace, with Apple reporting results for the last three months of 2019 after the US markets closed.

The result beat expectations, with revenues of $US91.8 billion up 9 per cent from the same period a year ago.

Investors were also pleased with a higher-than-expected forecast for revenue in the first quarter of 2020, sending Apple shares up more than 2 per cent in extended trading.

However, investors will continue to keep a close watch on Apple’s earnings amid concerns of a disruption to iPhone production as the coronavirus potentially spreads across major markets and production hubs in China.

Brent crude oil lifted to $US59.64 per barrel, while spot gold dropped sharply to $US1,568.87 an ounce.

The Australian dollar has remained weak at 67.68 US cents, having fallen by 1 per cent since the week started.

Source: https://www.abc.net.au/news


Global markets rally as US-Iran conflict avoids escalation, ASX follows


Australia

Global markets have rallied overnight, as fears of further escalation in the US-Iran conflict subsided for now. Wall Street rose and the Australian share market followed that positive lead.

Key points:

  • The ASX 200 closed 0.8 per cent higher at 6,874
  • Most major banks and mining stocks rose
  • The energy sector and gold miners lost ground

At the close of trade, the benchmark ASX 200 index was 0.8 per cent higher at 6,874.

Most blue chip stocks — such as three of the big four banks, BHP and Telstra — rose, while energy stocks lagged following a retreat in oil prices, with Brent crude falling as much as 4 per cent overnight.

During Australian and Asian trade yesterday, US stock market futures fell sharply, as Iran launched missile strikes on Iraqi bases housing US troops.

Stocks across the region fell, before recovering some of the losses after US President Donald Trump did not deliver an immediate response and tweeted “all is well”.

US futures recovered and Wall Street rose strongly during the session, with the S&P 500 and the Nasdaq hitting fresh record highs, before paring gains into the close.

Market snapshot at 8:20am (AEDT):

  • ASX SPI futures +0.7pc at 6,798, ASX 200 (Wednesday’s close) -0.1pc at 6,817
  • AUD: 68.70 US cents, 52.45 British pence, 61.84 Euro cents, 74.98 Japanese yen, $NZ1.03
  • US: Dow Jones +0.6pc at 28,745, S&P 500 +0.5pc at 3,253, Nasdaq +0.7pc at 9,129
  • Europe: FTSE 100 flat at 7,574, DAX +0.7pc at 13,320, CAC +0.3pc at 6,031, Euro Stoxx 50 +0.1pc at 3,424
  • Commodities: Brent crude -3pc at $US66.20/barrel, spot gold -1.1pc at $US1,556.35/ounce

Shares in Boeing lost more than 1 per cent, after one of its planes crashed shortly after take-off from Tehran, killing all 176 people on board.

In European trade, stocks rebounded from early losses.

Airlines reroute flights in Middle East

The oil price pullback will be good news for the fuel costs of global airlines, if it lasts, however, higher fuel bills may still be in store.

Qantas, along with international airlines including Germany’s Lufthansa, Air France, Singapore Airlines and Malaysia Airlines have rerouted flights to avoid airspace over Iran and Iraq, due to the tensions with the US.

Airline analysts have told Reuters the longer journey times will increase fuel usage, throw off schedules and add to operating costs.

On Wednesday, Qantas said its Perth to London flight would have an increased flying time of 40 to 50 minutes due to its redirected flight path, and passenger numbers would need to be reduced in order to carry more fuel.

Source: https://www.abc.net.au/news


Australian shares, US futures rebound after Iran says it doesn’t want war


Australia

The Australian share market has closed lower, but pulled back from steeper earlier losses, after Iran’s foreign minister said its strikes against US forces in Iraq “concluded proportionate measures in self-defence” following the US killing of an Iranian general.

Key points:

  • US officials have confirmed rockets have been fired at the Al-Asad and Erbil airbases in Iraq, which host US forces
  • The Australian share market and US stock market futures fell sharply on the initial news
  • Markets recovered some of those losses in the afternoon as the Iranian foreign minister said “self-defence measures” had “concluded”

In an escalation feared by markets, US officials this morning confirmed rockets had been fired at the Al-Asad and Erbil airbases in Iraq, which host US forces.

US stock market futures initially fell sharply in response to the news, with S&P 500 and Dow Jones futures both falling as much as 1 per cent.

The Australian share market has also took a hit, with the ASX 200 also down close to a per cent at its worst.

Tokyo’s Nikkei initially fell more than 2 per cent, while New Zealand’s main index also lost more than 1 per cent.

However, US futures recovered in afternoon trade, after Iran’s foreign minister Mohammad Javad Zarif said on Twitter that the regime had “concluded proportionate measures in self-defence” and did “not seek escalation or war”, while adding “but will defend ourselves against any aggression”.

External Link:

@JZarif (Iran's Foreign Minister): "Iran took & concluded proportionate measures in self-defense under Article 51 of UN Charter targeting base from which cowardly armed attack against our citizens & senior officials were launched. We do not seek escalation or war, but will defend ourselves against any aggression."

Australia’s share market followed the recovery in US futures, closing just 0.1 per cent lower for the day at 6,818 for the ASX 200 index.

Gold was the major beneficiary of the tensions, having jumped around $US35 an ounce this morning to around $US1,610/ounce as investors sought safe havens amid fears of an escalating conflict between the US and Iran.

That briefly took it to a fresh Australian dollar record price of $2,351.86/ounce.

However, the precious metal eased back to $US1,592/ounce after the Iranian foreign minister’s tweet was seen as lowering tensions.

Oil prices have remained elevated, however, with Brent crude still more than 1 per cent higher at $US69.08 a barrel, although it had risen further in earlier trade.

Aussie dollar back below 69 US cents

The Australian dollar has fallen back below 69 US cents and is weaker against a basket of currencies, as the US dollar rises after America’s trade deficit fell to a three-year low.

By 5:13pm (AEDT) the local currency was worth 68.7 US cents.

The currency had traded above 70 US cents at the very start of the new year, but has tracked lower over the past week.

Stronger economic data out of the United States contributed to the Aussie dollar’s decline against the greenback overnight.

Market snapshot at 8:15am (AEDT):

  • ASX SPI futures +0.04pc at 6,767, ASX 200 (Tuesday’s close) +1.3pc at 6,826
  • AUD: 68.65 US cents, 52.35 British pence, 61.61 Euro cents, 75.53 Japanese yen, $NZ1.03
  • US: Dow Jones -0.4pc at 28,581, S&P 500 -0.3pc at 3,237, Nasdaq -0.03pc at 9,068
  • Europe: FTSE 100 -0.02pc at 7,573, DAX +0.8pc at 13,226, CAC -0.02pc at 6,012, Euro Stoxx 50 flat at 3,419
  • Commodities: Brent crude -1pc at $US68.21/barrel, spot gold +0.4pc at $US1,571.75/ounce

Amid the US-China trade dispute, US imports fell and exports rose in November, while the closely-watched goods deficit with China tumbled by more than 15 per cent.

The US services sector strengthened, with data showing an improvement in non-manufacturing business activity.

However, it was not only a stronger US dollar that hurt the Australian dollar. Domestically, analysts have begun to weigh up the economic impact of a devastating, and ongoing, bushfire season.

On Tuesday, the ANZ-Roy Morgan weekly survey of consumer confidence fell to its lowest level in more than four years.

“A drop in confidence at the start of the year is unusual and almost certainly reflects the impact of the catastrophic bushfires over the weekend,” said ANZ’s head of Australian economist David Plank.

ANZ’s monthly indicator of job advertisements fell 6.7 per cent in December, with economists also blaming the impact of the bushfires.

“Based on previous major natural disasters, such as Victoria’s Black Saturday fires and Queensland’s 2010-11 floods, the current bushfires could see a short-term negative impact on employment,” said ANZ senior economist Catherine Birch.

Source: https://www.abc.net.au/news