Australian shares closed flat with a slight positive trend despite growing concerns about the US economy. Economic anxiety stems from tariffs, rising unemployment, and workforce reductions. Cobre CCBE secured an earn-in deal with BHP for Botswana projects, while Johns Lyng Group will exit the S&P/ASX 200, and Star Entertainment is pursuing liquidity measures amid an unsolicited proposal from Bally’s.
Australian shares closed with minimal changes on Monday, reflecting a cautious optimism despite waning investor confidence in the US economy. The S&P/ASX 200 Index ended at 7,962.3, with various factors contributing to economic anxiety, including tariffs imposed on China, Mexico, and Canada, increasing unemployment rates, and federal workforce reductions.
Concerns regarding a potential slowdown in the US economy have intensified. Ed Yardeni, President of Yardeni Research, commented on the situation, stating, “It’s getting harder to make out the shape of the economy through the fog of Trump 2.0’s firings and tariffs.” He also noted that the prevailing sentiment in the stock market has shifted towards a risk-averse stance, leading to market corrections.
In corporate news, Cobre CCBE announced an earn-in agreement with BHP Group’s subsidiary concerning its copper projects in Botswana. Following this announcement, Cobre’s shares saw a decline of over 3% by market close. Meanwhile, Johns Lyng Group JLG is set to be removed from the S&P/ASX 200 Index on March 24, resulting in a 12% drop in its shares.
Additionally, Star Entertainment Group SGR confirmed it had received a non-binding proposal from Bally’s, listed on the New York Stock Exchange. The company also revealed liquidity challenges and outlined various initiatives to improve its financial position, including a refinancing proposal expected to generate up to AU$940 million and a senior secured AU$250 million bridge facility facilitated by King Street Capital Management.
In summary, Australian shares remained steady despite looming concerns regarding the US economic landscape. Major contributions to market sentiment included tariffs, rising unemployment, and federal workforce changes. Notably, corporate developments involved Cobre’s strategic agreement with BHP and significant moves by Star Entertainment to address liquidity challenges. These factors emphasize the cautious mood among investors as they navigate this complex economic scenario.
Original Source: www.tradingview.com
