Continued economic uncertainty in the US has prompted a sell-off in stock markets, and the ASX was no exception today (11 March).
The S&P/ASX 200 slid 108.1 points, or 1.36%, to 7,854.2 points, as of 10.30am AEDT. The index has lost 4.19% over the last five days and 1.95% over the last 52 weeks.
Eight of the 11 sectors were lower in early trade. Energy edged down 0.13%, while materials inched up 0.01%.
US consumers expect an increase in unemployment within the next 12 months and a rise in inflation in the more immediate future.
The Federal Reserve Bank of New York’s Survey of Consumer Expectations showed the majority of respondents believe that the unemployment rate will be higher in a year’s time, with the expectation rising 5.4% to 39.4% – its highest reading since September 2023.
ANZ says households also see their financial situation deteriorating while short-run inflation expectations picked up slightly (0.13%) to 3.13%.
“However, inflation expectations at the three-year and five-year horizons remained steady at 3%,” Economics and Research FX Analyst Felix Ryan says.
This risk-off tone across markets also weighed on commodities.
“All sectors ended the session lower as the market grapples with the prospect of a weak economic outlook,” Ryan says.
“Gold found some support early in the session as concerns about the global economic outlook boosted haven demand.
“However, selling emerged late in the session as investors continue to look for opportunities to lock-in recent profits.”
The S&P/ASX200 is Australia’s leading share market index and contains the top 200 ASX-listed companies in terms of market capitalisation, and accounts for about 80% of the country’s equity market. The index is designed to measure the performance of the 200 largest index-eligible stocks listed on the ASX by float-adjusted market capitalisation.
It is recognised as the institutional investable benchmark in the country.
Write to Angela East at Mining.com.au
Images: ASX & iStock
