•   
  •   

Australia ASX drops, but China target gives hope

09:37  05 march  2021
09:37  05 march  2021 Source:   aap.com.au

ASX down 2.09pc, biggest slide since Sept

  ASX down 2.09pc, biggest slide since Sept Investors on the ASX are suffering their worst day of losses by percentage since September after US markets fell heavily.The S&P/ASX200 benchmark index was lower by 143.5 points, or 2.09 per cent, to 6690.5 at 1200 AEDT on Friday.

Inflation fears in the US forced the Australian share market to close lower, but not before investors gained some hope from China's decision to reinstate its economic growth target.

graphical user interface: Inflation fears in the US forced the Australian share market to close lower. © Mick Tsikas/AAP PHOTOS Inflation fears in the US forced the Australian share market to close lower.

The S&P/ASX200 benchmark index closed lower by 49.9 points, or 0.74 per cent, to 6710.8 on Friday.

The All Ordinaries closed lower by 57.6 points, or 0.82 per cent, at 6943.

The health sector had the biggest loss, 2.33 per cent, followed by materials (1.99 per cent) and information technology (1.58 per cent).

Losses on Wall Street set the tone after US Federal Reserve Chairman Jerome Powell failed to offset investors' fears about inflation.

Biden Administration China Ties Reveal a Deeper Disturbing Truth | Opinion

  Biden Administration China Ties Reveal a Deeper Disturbing Truth | Opinion The U.S. has helped create its most formidable adversary.Personnel is policy. By dint of such ties, and past dutiful service to administrations that pursued the very policies of engagement and accommodation that enabled Communist China's rise, we can surmise that the president, and the architects of his agenda, will likely be uniquely soft on China.

In a media appearance, Mr Powell suggested inflation will pick up in the coming months but not be enough for the central bank to change rate policies.

His message of patience caused US bond yields to jump and US stocks to fall further, signalling that investors see stronger growth and inflation ahead.

Yet the negative US influence dissipated from about 1230 AEDT.

The ASX and Aussie dollar changed course and rose after China set an annual growth target of more than 6 per cent.

China did not set a target last year after the coronavirus pandemic devastated its economy.

CMC Markets chief strategist Michael McCarthy said the target was good news for Australia.

In the past, China built infrastructure to stimulate its economy, he said.

China sets modest 6% economic growth target amid COVID rebound

  China sets modest 6% economic growth target amid COVID rebound Expected 2021 growth rate is far below what economists are forecasting as Beijing aims for more sustainable development.In 2020, China dropped a gross domestic product (GDP) growth goal from the premier’s work report for the first time since 2002 after the pandemic devastated its economy.

"So the Chinese are going to have to keep spending and that's good news for iron ore," Mr McCarthy said.

He said China's ambition may also have implications for its reluctance to accept Australian coal.

China blocked Australian coal shipments in retribution for Australia supporting calls for an inquiry into the origins of the coronavirus.

For the week, the ASX200 was higher by 0.56 per cent, after three consecutive weeks trading lower.

Domestically, the first AstraZeneca coronavirus vaccines were given.

It is the second vaccine to be distributed, following the Pfizer one.

On the ASX, there were big gains in energy.


Video: 'A chance' RBA could increase interest rates sooner (Sky News Australia)

Oil prices rose following an OPEC decision to keep production unchanged until at least April.

Oil Search jumped 4.99 per cent to $4.42 and Santos climbed 4.72 per cent to $7.76.

China aims to be carbon neutral by 2060. Its new 5-year plan won’t cut it.

  China aims to be carbon neutral by 2060. Its new 5-year plan won’t cut it. The plan could allow for emissions to keep growing through 2025.The new plan’s 2025 emissions goals reflect an ongoing contradiction between China’s short-term and long-term climate goals.

There were big falls for miners after base metals prices were lower.

BHP dipped by 2.17 per cent to $48.23, Fortescue dropped 0.67 per cent to $22.10 and Rio Tinto dived by 3.28 per cent to $117.68.

Crown Resorts said it will explain recent changes to its operations at a royal commission into its running of the Burswood casino in Perth.

The Western Australian government said the commission will give an interim report by June 30, and a final report by November 14.

The probe comes after a report into Crown's NSW operations required major changes for the company to keep the licence for a Sydney casino.

Shares were higher by 0.1 per cent to $9.97.

Fruit and vegetable grower Costa Group said it will buy a citrus farm and packing site to capitalise on overseas demand for citrus fruits.

Costa said it will buy the farm of KW Orchards and a packing operation, EJT Packers, both in NSW.

The farm includes citrus plantings of 312ha, 45ha of wine grapes as well as a dam.

The purchase will be funded from debt facilities.

Shares were steady at $4.60.

Looking ahead, Reserve Bank Governor Philip Lowe will on Wednesday speak about economic recovery at a conference held by the Australian Financial Review.

The Australian dollar was buying 77.24 US cents at 1718 AEDT, lower from 77.99 US cents at Thursday's close.

ON THE ASX

* The S&P/ASX200 benchmark index closed lower by 49.9 points, or 0.74 per cent, to 6710.8 on Friday.

* The All Ordinaries closed lower by 57.6 points, or 0.82 per cent, at 6943.

* At 1718 AEDT, the SPI200 futures index was higher by 14 points, or 0.21 per cent, at 6707 points.

CURRENCY SNAPSHOT

One Australian dollar buys:

* 77.24 US cents, from 77.99 cents on Thursday

* 83.53 Japanese yen, from 83.56 yen

* 64.59 Euro cents, from 64.70 cents

* 55.61 British pence, from 55.90 pence

* 107.63 NZ cents, from 107.43 cents.

Brokers rate these 3 ASX tech shares as a Buy .
Brokers have run the ruler over which ASX tech shares are a 'Buy' after they took a beating in the last month. Here's the lowdown. The post Brokers rate these 3 ASX tech shares as a Buy appeared first on The Motley Fool Australia.

usr: 0
This is interesting!