Market Updates: ASX Ended Lower Impacted By The Reopening Of Chinese Markets

October 08, 2018 10:05 AM AEDT | By Team Kalkine Media
 Market Updates: ASX Ended Lower Impacted By The Reopening Of Chinese Markets

After a week which saw the absence of the activity in Chinese markets, a new trend might be full of action. The week started on the negative note as the Asian markets opened up weaker. Last week was mostly dominated by the news related to oil prices and the US treasury yields. This week began with some relief as far as news related to the oil prices is concerned as they witnessed a downward momentum because of the decision of the United States to help meet the supply shortages globally. Previously, the supply shortages were witnessed primarily because of the Iran sanctions.

The United States may exempt some countries from the Iran sanctions next month. This would mean that the countries which are selected by the US would be allowed to import oil from Iran. The US has been pressurizing the companies as well as government to reduce imports from Iran. However, there is a quite possibility that only those nations would be granted exemption which have tried to reduce their imports from Iran.

What Happened to Australian Markets Today?

As expected, the Australian markets witnessed the negative impact on October 8, 2018 because of the pessimism prevailing on the markets globally thanks to the Chinese markets. S&P/ASX200 ended the day at 6100.3 which implies the fall of 85.2 points or 1.4%. Australian markets were also impacted by the unfavorable momentum in the stocks of resources, metals & mining as well as materials. The impacts of reopening of Chinese markets were visible in the beginning of the week as the concerns related to the global trade wars might again come up.

The Australian traders also focused on the data of the US Non-Farm Payrolls which stated that the US economy is all set to experience strong momentum. The report stated the unemployment rate is 3.7% hitting approximately 50-year low. Moreover, the momentum in the wage growth was also positive raising concerns that the Fed might come up with another rate hike in December meeting which would make USD stronger against the currencies of the emerging economies.

Myob Group Limited (ASX:MYO) and Lynas Corporation (ASX:LYC) ended day on the positive note as they advanced 19.128% and 2.801%, respectively. Coming to the losers of the day, Alumina Limited (ASX:AWC) and Beach Energy Limited (ASX:BPT) ended the day by falling 6.885% and 5.924%, respectively. However, Australia and New Zealand Banking Group Limited (ASX:ANZ) also fell by 2.633% as the bank expects that its annual results might get impacted as they need to provide compensation to the customers for the services which were either inadequate or were not made available. However, they also expect other charges as well. The impact of $697 million from the ongoing operations is expected to be felt on its PAT (full year). Additional $127 million hit would also be witnessed in regard to the wealth business which the company unloaded in the previous year to IOOF.

A Look at Chinese markets

The Chinese markets witnessed the downward momentum after investors were back from the holiday. The Chinese central bank yesterday made an announcement that the required reserve ratio for some of the lenders has been reduced by 1%. However, the impact on the equities was not substantial. This rule would come into force from October 15, 2018. According to People Bank of China, they would be releasing 1.2 trillion yuan and out of these 450 billion yuan would be utilized towards the repayment of present medium-term funding facilities.

Even after the liquidity support advanced by the central bank, the markets seem to have ignored that support is moving in the downward direction.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.