Australian Shares Remain Steady Amid Escalating US Economic Concerns

On Monday, Australian shares closed slightly up, with the S&P/ASX 200 Index at 7,962.3. Concerns over the US economic outlook due to tariffs and rising unemployment were prevalent. Cobre CCBE announced an earn-in agreement with BHP for copper projects, while Johns Lyng Group was removed from the index. Star Entertainment Group received a proposal from Bally’s amid liquidity challenges.

Australian shares exhibited minimal movement on Monday, closing with a slight positive bias amidst growing concerns regarding the stability of the US economy. The S&P/ASX 200 Index concluded the trading session at 7,962.3 points. Investors lingering uncertainties stem from the implications of tariffs imposed on China, Mexico, and Canada, as well as rising unemployment rates and cuts within the federal workforce.

According to a report 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 remarked, “No wonder the stock market’s default position is risk-off and stocks have been correcting,” indicating the pervasive cautious sentiment among investors.

In corporate developments, Cobre CCBE has entered into an earn-in agreement with a BHP Group subsidiary concerning their copper projects, Kitlanya East and Kitlanya West, located in Botswana. Consequently, Cobre’s shares declined by over 3% by the end of the trading day.

Additionally, the Johns Lyng Group JLG is set to be removed from the S&P/ASX 200 Index prior to the market opening on March 24, resulting in a significant 12% drop in the company’s shares during the market close.

Lastly, the Star Entertainment Group SGR announced that it received an unsolicited and non-binding proposal from Bally’s, a company listed on the New York Stock Exchange. Alongside this, the financially constrained casino operator revealed several liquidity initiatives, including a refinancing proposal potentially generating up to AU$940 million and a senior secured AU$250 million bridge facility with King Street Capital Management.

In summary, Australian shares remained largely unchanged amid increasing concerns about the US economy, influenced by various economic factors including tariffs and unemployment. Corporate news included Cobre CCBE’s agreement with BHP, alongside the removal of Johns Lyng Group from the S&P/ASX 200 Index. Additionally, Star Entertainment Group’s receipt of a proposal from Bally’s and its efforts to enhance liquidity were notable developments in the market.

Original Source: www.tradingview.com