Australia Market extends losses on economic growth concerns

11 Jan 2022 , 05:12 PM

The Australian share market finished lower for second straight session on Tuesday, 11 January 2022, due to concerns about the economic impact of the Omicron variant of the coronavirus infections in the country and tightening monetary conditions globally.

Investors remain concerned about inflation as well as likely policy tightening from central banks such as the U.S. Federal Reserve.

Total Covid-19 cases in the Australia surpassed 1 million, with the country 86,000 COVID-19 cases reported on Tuesday, with two more states due to report later in the day, straining hospitals already stretched thin and hitting company supply chains.

At closing bell, the benchmark S&P/ASX200 was down 56.95 points, or 0.96%, to 7,390.12. The broader All Ordinaries index fell 55.35 points, or 0.71%, to 7,710.72.

The top performing stocks in this index were POLYNOVO and ALUMINA, up 25.17% and 3.88% respectively. The bottom performing stocks in this index were ARB CORPORATION and NOVONIX, down 12.3% and 8.7% respectively.

Financial stocks declined amid growing expectations that the U.S. central bank might raise rates quicker than previously anticipated. Commonwealth Bank of Australia shares declined 1.5% and ANZ fell 1.3%.

Shares of retailers declined amid concerns about drop in customer footfall amid surge in COVID-19 infections. Australias two-biggest supermarket chains, Woolworths and Coles, fell more than 2% each, while Wesfarmers dropped 1.2%.

ECONOMIC NEWS: Australia Posts Trade Surplus Of AUD 9.423 Billion 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 downwardly revised AUD 10.781 billion surplus in October. It was the smallest trade surplus since April, amid softening global demand as more countries battled with a resurgence of coronavirus infections. Exports grew 2% month-over-month to AUD 43.86 billion and imports rose at a faster 6% to a 23-month high of AUD 34.44 billion. Considering the first eleven months of the year, the trade surplus surged to AUD 114.80 billion from AUD 65.22 billion in the same period of 2020.

CURRENCY NEWS: The U.S. dollar dipped 0.23% to 95.775 against a basket of its peers, withdrawing from its previous close at 95.991. The Australian dollar traded up 0.25% to $0.7186.

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