Australian shares closed flat on Monday amidst growing concerns over the US economy, with the S&P/ASX 200 Index at 7,962.3. Warnings about potential economic slowdown and corporate news, including Cobre’s agreement with BHP, impact market sentiment. Johns Lyng Group’s removal from the ASX 200 and Star Entertainment’s financial disclosures also highlight pressing issues.
Australian shares exhibited a flat trend with a slight positive bias by the close of Monday. Investor confidence in the sustainability of the US economy’s performance has notably diminished, leading the S&P/ASX 200 Index to conclude at 7,962.3. Concerns over potential US economic slowdown are exacerbated by tariffs impacting China, Mexico, and Canada, rising unemployment, and reductions to the federal workforce, as reported by Bloomberg.
“It’s getting harder to make out the shape of the economy through the fog of Trump 2.0’s firings and tariffs,” stated Ed Yardeni, President of Yardeni Research. He further observed, “No wonder the stock market’s default position is risk-off and stocks have been correcting.”
In corporate news, Cobre CCBE has entered an earn-in agreement with a wholly-owned subsidiary of BHP Group regarding its copper projects, Kitlanya East and Kitlanya West in Botswana. The announcement contributed to a decline of more than 3% in Cobre’s shares at closing.
Furthermore, Johns Lyng Group is scheduled to be removed from the S&P/ASX 200 Index, effective before the market opening on March 24, leading to a 12% drop in its share price. Additionally, Star Entertainment Group confirmed receipt of an unsolicited, non-binding offer from Bally’s, a New York Stock Exchange-listed company. The operator also revealed several liquidity initiatives aimed at financial stability, including a refinancing proposal potentially worth up to AU$940 million and a AU$250 million senior secured bridge facility with funds managed by King Street Capital Management.
In summary, Australian shares remain flat as concerns regarding the US economic outlook rise, with market indicators reflecting a risk-averse sentiment. The situation is exacerbated by geopolitical tariffs and job losses. Cobre’s new agreement with BHP marks a significant corporate development amidst fluctuating share prices, while liquidity challenges continue to hinder Star Entertainment Group’s fiscal health.
Original Source: www.tradingview.com
