Australian Sharemarket Slides on US Economic Concerns; Key Stocks in Focus

September 09, 2024 10:56 AM AEST | By Team Kalkine Media

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Australian Sharemarket Slides on US Economic Concerns; Key Stocks in Focus — Image source: shutterstock

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Australia's sharemarket took a hit this morning, with the S&P/ASX 200 index falling by 73 points, or 0.9%, at the start of trading. The decline was primarily driven by drops in major banks and energy stocks, reflecting broader concerns about the global economic outlook.

US Economic Data Impact

The downturn follows disappointing US hiring figures, which came in 23,000 below expectations for August. This shortfall has heightened fears that the Federal Reserve may not have acted swiftly enough to mitigate a potential economic slowdown in the world's largest economy. Additionally, revisions to previous jobs reports have shown a slower pace of hiring over the past three months, the weakest since the COVID-19 pandemic.

Iron ore prices also experienced a dip, falling briefly below $US90 per ton, marking the lowest level since November 2022. Despite this, iron ore miners have shown little reaction to the price drop.

Stocks to Watch

- Premier Investments Ltd (ASX:PMV): Shares in Premier Investments fell by 3.1% to $34.12 after the company announced the termination of John Cheston, managing director of its retailer Smiggle. Cheston was dismissed for "serious misconduct and a serious breach of his employment terms." Premier Investments also released a weak trading update, adding to investor concerns.

- Westpac Banking Corp (ASX:WBC): Westpac’s shares declined by 1.8% to $31.50. This drop follows the announcement of Anthony Miller as the new group CEO, effective December. Miller, currently the CEO of Westpac’s business and wealth division, will replace the outgoing CEO Peter King.

- Charter Hall Retail REIT (ASX:CQR): Charter Hall Retail REIT has joined forces with superannuation fund Host Plus to make an offer for ASX-listed Hotel Property Investments Ltd (ASX:HPI) at $3.65 per share. HPI has indicated that it will recommend shareholders reject the offer. HPI’s shares rose by 4.9% to $3.65, while Charter Hall Retail REIT’s shares fell by 1.9% to $3.60.

- Guzman Y Gomez Ltd (ASX:GYG): Shares in the Mexican-themed fast-food chain rose by 5.3% to $40.54. The stock is set to join the benchmark S&P/ASX 200 index on September 23, as part of the index’s quarterly rebalance. Alongside Guzman Y Gomez, Yancoal Australia Ltd (ASX:YAL) and Metals Acquisition Corp (ASX:MAQ) will also join the index.

As market conditions fluctuate and significant company developments unfold, these stocks are likely to remain closely watched by investors and analysts alike.

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