Australia: Shares close nearly 1% lower on renewed recession fears
AUSTRALIAN shares snapped a 4-day winning streak on Wednesday (Jun 29), as investors took cues from an overnight sell-off on Wall Street after dismal US consumer confidence data crushed market optimism globally and stoked recession concerns.
The S&P/ASX 200 index fell 0.94 per cent to 6,700.2 points at the close of trade, with most sectors in negative territory.
US consumer confidence hit a 16-month low in June as worries about stubborn inflation left consumers to anticipate that the economy would slow significantly or even slide into recession in the second half of the year.
Investors, however, appeared to show scant response to upbeat Australian retail sales data, which suggested demand is proving resilient in the face of surging inflation and rising interest rates.
A turnaround in Australian banking stocks, with a 0.3 per cent gain, helped the local bourse recoup some losses.
“Rising interest rates haven’t dented Australia’s appetite for department stores and cafés... Ultimately the labour market remains strong, and as many Australians haven’t endured a ‘true recession’, it is plausible to believe there is some complacency with RBA’s (Reserve Bank of Australia) rates still relatively low,” City Index senior market analyst Matt Simpson said.
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Local technology stocks skidded 2.8 per cent, tracking a weak lead from tech-heavy Nasdaq Composite Index overnight.
ASX-listed shares of Block fell 6.2 per cent, while accounting software producer Xero erased 6.4 per cent.
Star Entertainment climbed 3.14 per cent after the casino operator said it has appointed fintech firm Tyro Payments chief executive Robbie Cooke as its new head and managing director.
Tyro Payments plunged 21.2 per cent after the company said Cooke will serve 6 months’ notice before he joins Star Entertainment.
Bucking the downward trend, energy heavyweights Woodside Energy and Santos advanced 3.1 per cent and 1.9 per cent, respectively, on upbeat oil prices.
Lithium miner Liontown Resources jumped 17.4 per cent to mark its best day in more than 4 months after signing an offtake lithium supply deal with Ford Motor Co.
New Zealand’s benchmark S&P/NZX 50 index fell 0.54 per cent to finish the session at 10,958.8 points. REUTERS
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