Australian shares closed flat amid concerns over US economic performance, with notable market activity from Cobre, Johns Lyng Group’s index removal, and Star Entertainment’s liquidity plans.
On Monday, Australian shares exhibited a flat trend with a modestly positive bias, as investor confidence in the stability of the US economy began to diminish. The S&P/ASX 200 Index closed virtually unchanged at 7,962.3, signaling a cautious outlook among market participants.
Concerns regarding potential economic slowdowns in the US are rising, influenced by tariffs on key trading partners such as China, Mexico, and Canada, higher unemployment rates, and reductions in the federal workforce. According to Bloomberg, Ed Yardeni, President of Yardeni Research, stated, “It’s getting harder to make out the shape of the economy through the fog of Trump 2.0’s firings and tariffs,” illustrating the confusion surrounding the economic climate.
In corporate developments, Cobre CCBE announced an earn-in agreement with BHP Group’s wholly-owned subsidiary for two copper projects in Botswana, namely Kitlanya East and Kitlanya West. Consequently, Cobre’s shares experienced a decline of more than 3% by market close.
Additionally, the Johns Lyng Group JLG was officially removed from the S&P/ASX 200 Index prior to market opening on March 24, resulting in a significant 12% drop in its share value. Furthermore, Star Entertainment Group SGR revealed that it received an unsolicited, non-binding proposal from Bally’s, a company listed on the New York Stock Exchange.
In separate disclosures, Star Entertainment outlined several measures to address its liquidity challenges as it struggles to maintain operations. This includes a refinancing plan aimed at generating up to AU$940 million and a senior secured AU$250 million bridge facility funded by King Street Capital Management.
In summary, Australian shares remained relatively stable despite concerns over US economic performance. Key factors influencing this stability include international tariffs, unemployment issues, and workforce cuts. Significant corporate activity was highlighted by the Cobre-BHP agreement, the removal of Johns Lyng Group from the index, and Star Entertainment’s liquidity initiatives. Overall, market sentiment reflects caution amidst these developments.
Original Source: www.tradingview.com
