Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
News
All NewsCompaniesIndexesCurrency / ForexCommoditiesCryptocurrenciesETFInterest RatesEconomyThemesSectors 

Australian shares fall for third day as miners, recession fears weigh

12/08/2022 | 12:57am EST

*

Benchmark closes at over 2-week low

*

Link falls as much as 10.7%

*

Air NZ up 4.6% after outlook hike

Dec 8 (Reuters) - Australian shares on Thursday closed at their lowest in more than two weeks, as potential future rate hikes to contain inflation raised worries about a global recession.

The S&P/ASX 200 index fell 0.8% to 7,175.5 points, marking a third straight day of losses.

Risk sentiment across the globe has been dim of late as persisting worries over the pace of interest rate hikes by the U.S. Federal Reserve and other major central banks, including the Reserve Bank of Australia, has clouded growth outlook.

Azeem Sheriff, a market analyst at CMC Markets said Australia could be more of a victim of the global recession as opposed to them going into recession in the near future, but he was optimistic about the benchmark ending higher this year.

The S&P/ASX 200 index is down 3.5% so far this year, more than 200 points below the closing level last year.

Analysts at Jefferies, however, warned that having avoided a meaningful recession since 1992, Australian economy is "structurally poorly positioned for rising interest rates".

Domestic miners lost over a percent on the back of lower iron-ore prices, with behemoths Rio Tinto, BHP Group and Fortescue all seeing a decline.

Energy stocks were the top percentage losers, with the sub-index falling over 2.7%. Sector majors Woodside and Santos lost 3.8% and 1.3%.

Financials shed around 1%, with all the "Big Four" banks falling. National Australia Bank dropped 1.6%.

Shares of Link Administration marked their worst day since Sept. 26 after the firm ended takeover talks with Canada's Dye & Durham.

New Zealand's benchmark S&P/NZX 50 index ended 0.1% up at 11,617.14 points.

The country's flagship carrier Air New Zealand increased its earnings forecast for the first half of fiscal 2023 on strong travel demand across domestic and international networks. Shares were up as much as 4.6%. (Reporting by Rishav Chatterjee in Bengaluru; editing by Uttaresh.V)


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
AIR NEW ZEALAND LIMITED -0.63% 0.785 End-of-day quote.5.37%
BHP GROUP LIMITED -0.63% 49.23 Delayed Quote.8.57%
DYE & DURHAM LIMITED 0.55% 21.94 Delayed Quote.32.97%
FORTESCUE METALS GROUP LIMITED -1.33% 22.19 Delayed Quote.9.65%
LINK ADMINISTRATION HOLDINGS LIMITED -0.26% 1.945 Delayed Quote.-1.27%
NATIONAL AUSTRALIA BANK LIMITED 0.13% 31.83 Delayed Quote.5.76%
RIO TINTO PLC 0.43% 6318 Delayed Quote.8.50%
S&P/ASX 200 -0.16% 7481.7 Real-time Quote.6.47%
SANTOS LIMITED -0.97% 7.17 Delayed Quote.1.40%
WOODSIDE ENERGY GROUP LTD -0.33% 36.3 Delayed Quote.2.77%
Latest news "Economy"
01:19pU.S. again asks Mexico to review labor rights issues at VU Manufacturing
RE
01:16pUnilever turns to former Heinz exec to steer new course
RE
01:16pNHL-Hall of Famer 'Golden Jet' Bobby Hull dies at 84
RE
01:15pBoeing to add 737 MAX line as it boosts production
RE
01:09pEU planning fast-track permits for clean tech -draft
RE
01:06pU.S. govt proposes expanding Obamacare coverage for birth control
RE
12:58pThree years on, Britain still waits for Brexit dividend
RE
12:51pPiraeus Bank to reduce bad loan exposure ratio to below 6% in 2023
RE
12:47pOne person arrested and one person wounded after knife attack in Brussels
RE
12:43pDeutsche Bank interested in financing Serie A - sources
RE
Latest news "Economy"