Australian shares remained flat with a slight positive trend amidst waning investor confidence in the US economy. Key developments included Cobre’s agreement with BHP for Botswana projects, Johns Lyng’s removal from the ASX 200, and Star Entertainment’s liquidity initiatives.
Australian shares exhibited stability with a slightly positive trend at the close of trading on Monday, despite a decline in investor confidence regarding the US economy’s sustained performance. The S&P/ASX 200 Index ended the day virtually unchanged at 7,962.3.
Concerns about the US economy continue to grow, driven by tariffs impacting China, Mexico, and Canada, increasing unemployment rates, and federal workforce reductions. According to Bloomberg, these factors are intensifying fears of a potential economic slowdown in the US.
Ed Yardeni, President of Yardeni Research, critiqued the current economic landscape, stating, “It’s getting harder to make out the shape of the economy through the fog of Trump 2.0’s firings and tariffs.” He further remarked, “No wonder the stock market’s default position is risk-off and stocks have been correcting.”
In corporate developments, Cobre CCBE entered into an earn-in agreement with a wholly-owned subsidiary of BHP Group BHP concerning its copper projects, Kitlanya East and Kitlanya West, located in Botswana. Following this announcement, Cobre’s shares decreased by more than 3% by the market’s closing time.
Additionally, Johns Lyng Group JLG is slated for removal from the S&P/ASX 200 Index before the market opens on March 24, resulting in a 12% drop in their shares at market close.
Moreover, Star Entertainment Group SGR reported receiving an unsolicited, non-binding proposal from Bally’s, a company listed on the New York Stock Exchange. In another filing, the financially troubled casino operator revealed several liquidity enhancement strategies, including a refinancing plan that may yield up to AU$940 million and a senior secured AU$250 million bridge facility from funds managed by King Street Capital Management.
In summary, Australian shares concluded the trading day flat as investors expressed concerns over the potential slowdown of the US economy amid rising tariffs and unemployment. Notable corporate developments included Cobre’s agreement with BHP, Johns Lyng’s removal from the ASX 200, and Star Entertainment’s ongoing liquidity initiatives. These factors collectively indicate a cautious sentiment prevailing in the market, further underscoring the challenges faced by investors.
Original Source: www.tradingview.com
