Australian Economy

ASX rises despite economic worries, Wall Street struggles on recession risk

Mining and energy companies propped up the Australian share market on Tuesday, though worries about a global economic slowdown and aggressive interest rate hikes kept sentiment in check.

The ASX 200 index closed 0.3 per cent higher at 7,112 points.

By 4:20pm AEST, the Australian dollar was trading at 70 US cents, after a 0.5 per cent rise.

The local currency fell as low as 68.73 US cents this week, its weakest level in two years.  

Overnight, global market sentiment was affected by China’s worse-than-expected economic figures, which showed that widening COVID-19 lockdowns took a heavy toll on consumption, industrial production and employment in April, adding to fears of a global slowdown.

“Chinese economic activity may recover in May because daily new infections have trended down recently and the number of medium‑ to high‑risk areas have fallen,” said Commonwealth Bank’s head of international economics Joseph Capurso.

Brambles takeover talks end, James Hardie profit jumps

Shares in Brambles dropped 7.6 per cent, after revealing that it is no longer a buyout target.

In a statement, it said European private equity firm CVC Capital Partners has pulled out of preliminary talks with Brambles, over a potential $20 billion takeover bid, citing “current external market volatility”.

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