Australian shares closed flat amid concerns about the US economy, with the S&P/ASX 200 Index at 7,962.3. Rising tariffs and unemployment contribute to fears of a slowdown. Cobre entered an agreement with BHP, shares fell 3%. Johns Lyng will exit the S&P/ASX 200 Index, shares down 12%. Star Entertainment revealed a proposal from Bally’s amid liquidity efforts.
Australian shares presented a flat performance with a slight positive bias, concluding Monday’s trading session with the S&P/ASX 200 Index remaining largely unchanged at 7,962.3. This steadiness occurred amid growing concerns regarding a potential downturn in the US economy, as investor confidence wanes regarding the sustainability of US economic growth.
In light of rising tariffs imposed on China, Mexico, and Canada, coupled with increasing unemployment and a reduction in the federal workforce, apprehensions regarding an economic slowdown are intensifying. According to Ed Yardeni, President of Yardeni Research, “It’s getting harder to make out the shape of the economy through the fog of Trump 2.0’s firings and tariffs.” He further noted, “No wonder the stock market’s default position is risk-off and stocks have been correcting.”
In corporate developments, Cobre CCBE has entered into an earn-in agreement with a wholly-owned subsidiary of BHP Group for the Kitlanya East and Kitlanya West copper projects located in Botswana, although shares experienced a decline of over 3% by market close. Furthermore, Johns Lyng Group JLG is set to exit the S&P/ASX 200 Index prior to the market opening on March 24, with shares plummeting 12% at the close.
In a notable announcement, Star Entertainment Group SGR revealed that it has received an unsolicited, non-binding proposal from Bally’s, a company listed on the New York Stock Exchange. Moreover, the financially troubled casino operator has disclosed several liquidity measures to maintain operations, including a refinancing proposal that might yield AU$940 million alongside a secured AU$250 million bridge facility facilitated by funds managed by King Street Capital Management.
In summary, the Australian stock market remains stable amidst apprehensions about the US economic outlook, influenced by tariffs and rising unemployment. Companies like Cobre and Star Entertainment Group are navigating significant changes, including agreements and liquidity strategies, highlighting the dynamic nature of the market in response to economic indicators.
Original Source: www.tradingview.com
