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Australian stocks fall as Covid worries affect market sentiment

The S&P/ASX 200 Index dropped 34.20 points or 0.46% to 7,373.10 on Friday, down 0.4% for the week, as investors focused on the news of Covid- 19 surged across Europe and Wall Street remained closed for the Thanksgiving holiday.

ASX 200 futures trade 0.65% lower.

The number of Covid-19 infections is breaking records in parts of Europe, prompting new restrictions on containment as the continent is once again the epicenter of the pandemic. Austria introduced a nationwide lockdown despite protests, while France said face masks would be back mandatory in many places and especially indoors to help prevent a new wave of infections. Meanwhile, researchers are tracking a new coronavirus variant discovered in South Africa that contains more than 30 changes to the mutated protein, which could have an impact on the vaccine's effectiveness and transmissibility. ask for. in cash.

Shares of miners fell, with Rio Tinto Ltd (ASX:RIO) down 0.94%, BHP Billiton Ltd (ASX:BHP) losing 0.54% and Fortescue Metals Group Ltd (ASX:FMG) down 1 ,57%.

Major airlines also fell as covid fears hit the travel outlook, with Qantas Airways Ltd (ASX:QAN) down 3.02%, Flight Center Ltd (ASX:FLT) down 3.56% and Webjet Ltd (ASX: WEB) fell 3.1%.

Oil-related stocks also traded lower, with Oil Search Ltd (ASX:OSH) down 1.18%, Santos Ltd (ASX:STO) down 0.88%, Woodside Petroleum Ltd (ASX:WPL) down 0.66% and Beach Energy Ltd (ASX: BPT) down 1.59%.

In the bond market, the 10-year Australian bond yield plummeted 316 basis points to 1.81%, while the 10-year US yield also dropped to 1.588%.

Investors will also keep a close eye on retail sales data due this morning.

In New Zealand, the NZX 50 fell 0.72% to 12,703.

Sharing with the writer, Mr. Duy Anh said that the worst has passed, right from the middle of August 2021, investors have heard the story of negative Q3 GDP, bad Q3 business results but bad results. The stock market (stock market) still held steady and increased unexpectedly (at that time VN-Index was still anchored around 1,400 points). The expert believes that the level around 1,400 is a strong support for the current market.

In the medium and long term, with the trend of loosening monetary policy, increasing FDI investment, record-setting remittances, and business results of listed companies all benefit from macro policies. There is a high probability that business results will be positive and increase by 20% or more for most of the mid- to large-sized listed companies in 2022.
Meanwhile, many people are still worried about high inflation affecting the economy. Mr. Duy Anh expressed his view that he did not completely agree with this idea, but pointed out that inflation at a controllable level is a "friend" that is essential for economic development and businesses to benefit. Depending on the time and stage of the economy, the Government with a lot of accumulated experience can adjust accordingly.


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