Australian Shares Steady as US Economic Concerns Mount; Cobre’s New Partnership with BHP
Australian shares closed flat at 7,962.3, influenced by waning confidence in US economic strength, concerns over tariffs, and rising unemployment. Cobre signed an earn-in deal with BHP for Botswana projects, while Johns Lyng Group is set to exit the S&P/ASX 200. Star Entertainment received a proposal from Bally’s amid liquidity initiatives.
On Monday, Australian shares exhibited a flat performance with a slight positive undertone, closing at 7,962.3 on the S&P/ASX 200 Index. This comes amid diminishing investor confidence concerning the sustained economic performance of the United States, fueled by rising unemployment and government workforce reductions. Furthermore, tariffs imposed on China, Mexico, and Canada have raised concerns regarding a potential slowdown in the US economy, as reported by Bloomberg.
Ed Yardeni, President of Yardeni Research, articulated the prevailing sentiment, noting, “It is becoming increasingly difficult to discern the trajectory of the economy amid the uncertainties stemming from Trump’s firings and tariffs.” He further stated, “The stock market’s default position appears to be risk-off, leading to ongoing corrections in stock valuations.”
In corporate news, Cobre CCBE has entered into an earn-in agreement with a unit of BHP Group concerning its Kitlanya East and Kitlanya West copper projects located in Botswana. Consequently, shares of Cobre fell by over 3% at the market’s close. Additionally, it was announced that Johns Lyng Group JLG will be removed from the S&P/ASX 200 Index before the market opens on March 24, resulting in a 12% decline in its share prices.
Moreover, Star Entertainment Group SGR revealed that it has received an unsolicited, non-binding proposal from Bally’s, which is listed on the New York Stock Exchange. Alongside this, the casino operator disclosed several liquidity measures aimed at maintaining its operations, including a refinancing proposal that could yield up to AU$940 million, as well as a AU$250 million senior secured bridge facility facilitated by King Street Capital Management.
In summary, the Australian shares remained relatively stable amid increasing worries regarding the US economy. Investor sentiment has been affected by factors such as tariffs, rising unemployment, and federal workforce cuts. Key developments in the corporate sector included Cobre’s agreement with BHP, the removal of Johns Lyng Group from the index, and Star Entertainment Group’s moves to secure liquidity.
Original Source: www.tradingview.com
