Concluding the session, the ASX200 dipped by 21.4 points, marking a 0.27% decline, closing at 8036.5 points. The All Ordinaries similarly retreated, losing 30.8 points or 0.37% to settle at 8272.7 points.
Investors faced mixed sentiments with seven out of eleven sectors in the red. Technology shares bore the brunt, retreating by a significant 3.4%. Leading this sector's decline was Wisetech Global Ltd, which plummeted by 6.32%.
On a positive note, Liontown Resources emerged as a standout, rising by 3.66% to close at 99c, representing a rare bright spot in an otherwise gloomy session.
Commenting on the tech downturn, CommSec market analyst Laura Besarati noted, “The tech sector's downfall came amid news that the Biden administration might impose stricter trade limits on China, particularly targeting essential tech exports.”
Elsewhere, Domino’s Pizza suffered the most significant blow, falling 8.23% by the day's end. Meanwhile, the banking sector displayed mixed results. ANZ edged up by 0.3%, Westpac held steady, while Commonwealth Bank and NAB experienced losses of 0.6% and 0.2%, respectively.
The property sector also faced headwinds, potentially reflecting investor jitters over prospective rate hikes.
This market movement unfolded against the backdrop of noteworthy employment data from the Australian Bureau of Statistics. Unemployment edged up to 4.1%, even as the job market added 50,000 positions in June, surpassing analysts’ predictions of 20,000. “This job surge has elevated concerns regarding potential interest rate increases in Australia,” Besarati explained.
Anneke Thompson, chief economist at CreditorWatch, highlighted that the latest labor force figures provide a mixed bag for the Reserve Bank of Australia (RBA). “Job growth has generally kept pace with population increases since borders reopened in mid-2022. While unemployment remains low relative to pre-pandemic levels, the job market shows resilience without signs of overheating,” Thompson stated.
She further elaborated, “This development is favorable for the RBA, which aims to navigate the dual challenge of sustaining employment while curbing inflation. The RBA has succeeded on the employment front so far, but controlling inflation at the current monetary policy setting remains uncertain. We anticipate that, with decelerating business conditions, the growth in employment will significantly taper off by late 2024 into 2025, causing a potential rise in unemployment to around 4.5%.”
Globally, markets responded to significant shifts as well. On Wednesday, the Nasdaq experienced its biggest drop since December 2022, slumping by 2.8%. The S&P 500 decreased by 1.4%, whereas the Dow Jones intriguingly climbed by 0.6%, reaching a successive record high.
Sources: Credit to the observations of Aisling Brennan and insights from the original article.
Published:Saturday, 20th Jul 2024
Source: Paige Estritori
![]() | Contactless Revolution: The Decline of Cash Among Tradies 07 Sep 2024: Paige Estritori Australia is embracing a cashless economy, a trend that is significantly reshaping how tradespeople, or 'tradies,' handle transactions in their day-to-day operations. - read more |
![]() | RBA Remains Cautious Despite Economic Slowdown 06 Sep 2024: Paige Estritori Borrowers expecting a reduction in interest rates due to sluggish economic growth might have to wait longer, as the Reserve Bank of Australia (RBA) prioritizes inflation management. - read more |
![]() | NSW Cracks Down on Abuse of First-Home Buyer Benefits 02 Sep 2024: Paige Estritori More than $9 million has been reclaimed in a concerted effort by Revenue NSW to ensure the first-home buyers program remains fair and effective. This initiative comes in response to a small group of applicants attempting to exploit the system meant to aid genuine first-time homebuyers. - read more |
![]() | Retail Sector Braces for Tough Holiday Season 01 Sep 2024: Paige Estritori As Australians continue to face a challenging cost of living crisis, economic analysts have prepared retailers for a rocky road ahead as the Christmas season approaches. - read more |
![]() | Stamp Duty Ruse Exposed: Hundreds of Aussie Homeowners Face Repercussions 01 Sep 2024: Paige Estritori Australia’s property market has witnessed a crackdown on homeowners exploiting a government initiative designed to ease the financial burden for first-time buyers. The scheme, intended to provide stamp duty relief, has seen numerous participants bending the rules to save money. - read more |
![]() | Essential Financial Safety Nets for Aussie Truck Drivers Welcome to the road less traveled, where the rubber meets financial prudence. Truck driving in Australia is not just about long miles but also about ensuring financial stability amidst life's crossroads. As a truck driver, taking the wheel of your financial future is crucial, and that's what we'll navigate in this article. - read more
|
![]() | How to Get a Truck Loan with Less-Than-Perfect Credit Securing finance for any significant purchase can be a challenge, especially when it comes to acquiring a truck for business purposes. Coupled with a less-than-perfect credit score, this task can seem daunting for many Australians. The ripple effects of financial constraints can impede business operations, affecting the lifeline of commercial ventures that rely on transportation. - read more
|
![]() | The Top Mistakes to Avoid When Applying for a Truck Loan in Australia Commercial vehicle loans in Australia are a vital component in the Continuum of the transportation and logistics industry. They provide businesses and individuals with the necessary funds to acquire trucks and other heavy vehicles critical for their operations. Understanding the nuances of these loans is imperative for anyone in the market for a commercial vehicle. - read more
|
![]() | 5 Tips on Securing Low-Interest Rates for Your Vehicle Purchase Embarking on the journey of acquiring a commercial vehicle is a significant decision for any business. Securing a loan with a low-interest rate is not just a matter of luck; it involves meticulous planning and a thorough understanding of the lending landscape. This opening section sets the scene for our deep dive into navigating the commercial vehicle loan process with an eye toward minimizing costs and maximizing value. - read more
|
![]() | The Pros and Cons of Leasing vs. Buying a Truck for Your Business Small businesses that require regular transportation of goods may find it essential to purchase a truck. However, this acquisition can become a significant investment that requires careful consideration before making a decision. The two options available are buying or leasing a truck. In this article, we will explore the pros and cons of each option to help you make an informed choice. - read more
|
![]() |
How to maintain your truck to extend its lifespan in Australian conditions Maintaining your truck is essential if you want to prolong its lifespan and save money down the road. Australian conditions can put a lot of strain on your vehicle, and neglecting its maintenance can lead to costly breakdowns and repairs. - read more
|
![]() |
5 Tips on Securing Low-Interest Rates for Your Vehicle Purchase Embarking on the journey of acquiring a commercial vehicle is a significant decision for any business. Securing a loan with a low-interest rate is not just a matter of luck; it involves meticulous planning and a thorough understanding of the lending landscape. This opening section sets the scene for our deep dive into navigating the commercial vehicle loan process with an eye toward minimizing costs and maximizing value. - read more
|
![]() |
The Commercial Buyers Guide to Buying a Used Truck in Australia With the evolution of the logistics industry and small businesses gaining momentum in Australia, the market for used trucks has witnessed substantial growth in recent years. This surge is a testament to the pivotal role commercial vehicles play in driving the economy forward, keeping supply chains agile and businesses thriving. - read more
|
![]() |
Maximizing Your Fleet Potential: How Truck Financing Shapes Success Trucks play a pivotal role in the Australian logistics and transport industry, serving as the lifeblood that keeps commerce flowing. The dependable rumble of engines crisscrossing the nation's highways is more than just a symbol of industry; it's a critical component of productivity and economic stability. Without these workhorses facilitating the timely movement of goods, the Australian market would face significant challenges meeting the demands of both businesses and consumers alike. - read more
|
![]() |
The Top Mistakes to Avoid When Applying for a Truck Loan in Australia Commercial vehicle loans in Australia are a vital component in the Continuum of the transportation and logistics industry. They provide businesses and individuals with the necessary funds to acquire trucks and other heavy vehicles critical for their operations. Understanding the nuances of these loans is imperative for anyone in the market for a commercial vehicle. - read more
|