Australian Market Expands Losses Amid Economic Growth Problems

The Australian equity market closed lower for the second session in a row on Tuesday, January 11, 2022, amid concerns over the economic impact of the Omicron variant of coronavirus infections in the country and tighter monetary conditions across the board. global.

Investors remain concerned about inflation as well as the likely policy tightening of central banks such as the US Federal Reserve.

Australia’s total number of Covid-19 cases topped one million, with 86,000 COVID-19 cases reported in the country on Tuesday, with two more states due to report later today, straining hospitals already stretched and hitting business supply chains.

At the close, the benchmark S & P / ASX200 was down 56.95 points, or 0.96%, to 7,390.12. The larger All Ordinaries Index fell 55.35 points, or 0.71%, to 7,710.72.

The best performing stocks in this index are POLYNOVO and ALUMINA, up 25.17% and 3.88% respectively. The worst performing stocks on this index were ARB CORPORATION and NOVONIX, down 12.3% and 8.7% respectively.

Financials fell on rising expectations that the US central bank could raise rates faster than expected.

Commonwealth Bank of Australia shares fell 1.5% and ANZ fell 1.3%.

Retailer shares declined amid concerns over declining customer traffic due to the surge in COVID-19 infections. Australia’s two largest supermarket chains, Woolworths and Coles, fell more than 2% each, while Wesfarmers fell 1.2%.

ECONOMIC NEWS: Australia posts AUD 9.423 billion trade surplus in November – Australia posted a merchandise trade surplus of AUD 9.423 billion in November, the Australian Bureau of Statistics said on Tuesday, down from the figure. surplus revised downward to AUD 10.781 billion in October. It was the smallest trade surplus since April, against a backdrop of slowing global demand as more countries battled a resurgence in coronavirus infections. Exports increased 2% month-on-month to AUD 43.86 billion and imports increased at a faster pace of 6% to a 23-month high of AUD 34.44 billion. Considering the first eleven months of the year, the trade surplus jumped to AUD 114.80 billion from AUD 65.22 billion in the same period of 2020.

CURRENCY NEWS: The US Dollar lost 0.23% to 95.775 against a basket of its peers, retreating from its previous close at 95.991. The Australian dollar traded up 0.25% to $ 0.7186.

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(This story was not edited by Business Standard staff and is auto-generated from a syndicated feed.)

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