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Australia Market falls on rate hike, economy fears

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Capital Market
Last Updated : May 10 2022 | 10:16 PM IST
Australian share market finished lower for third straight session on Tuesday, 10 May 2022, as investors fled risk and sought safe havens amid concerns about the outlook for the global economy. That adds to pressure from Russia's war on Ukraine and a Chinese slowdown.

However, market losses capped after new data showed retail sales volumes rose by 1.2% during the March quarter despite the spread of Omicron in many parts of the country.

Market participants concerned that an aggressive moves by global central banks to contain inflation could lead to a period of stagflation or an outright recession. Central banks in the United States, Britain and Australia raised interest rates last week, and investors girded for more tightening as policymakers fight soaring inflation.

At closing bell, the benchmark S&P/ASX200 fell 69.50 points, or 0.98%, to 7,051.16. The broader All Ordinaries index dropped 72.78 points, or 1%, to 7,285.16.

Energy and mining stocks were the hardest hit after a significant pullback in commodity prices overnight. Prices of hard commodities and oil have faced pressure recently due partly to tough Covid-19 related restrictions in a number of Chinese cities.

In company news today, fund manager Pendal Group (PDL) posted a 31 per cent increase in its half-year fee revenue, a 59 per cent jump in its profits and a 24 per cent increase in its dividend to 21 cents per share. Shares of PDL jumped 8.1 per cent today.

Shares of defense technology company Electric Optic Systems (EOS) jumped 3.1 per cent after it announced the successful qualification of its directed energy (DE) drone defence system. The system can defend against emerging threats from swarm drone attacks.

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ECONOMIC NEWS: The total value of retail sales in Australia was up a seasonally adjusted 1.6% on month in March, the Australian Bureau of Statistics said on Tuesday - coming in at A$33.626 billion. Retail sales were up 9.4% on year. For the first quarter of 2022, retail sales rose 1.2% on quarter to A$93.186 billion after jumping 7.9% in the three months prior.

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First Published: May 10 2022 | 4:56 PM IST

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