Australian Economy

China’s economy slumps from COVID-19 lockdowns, ASX rises as Brambles considers $20b takeover bid

Australian shares are struggling to maintain their early morning rally, after China revealed that its economy had suffered a worse-than-expected slump in April.

It was the result of China’s widening COVID-19 lockdowns, which are adding to fears its economy could shrink in the March quarter.

Given that China is Australia’s biggest trading partner, a slowdown could have a significant impact on the local economy.

The ASX 200 was up 0.2 per cent, to 7,090 points, by 2:05pm AEST.

The benchmark index had jumped by as much as 0.9 per cent on Monday morning before the disappointing Chinese economic data was released.

The Australian dollar slumped to its weakest level in around two years. It was buying 68.8 US cents, after a 0.9 per cent drop.

On oil markets, Brent crude futures tumbled to $US110 a barrel, after a 1.4 per cent slide.

Spot gold fell slightly to $US1,810 an ounce.

How bad was China’s economic data?

China’s retail sales plunged by 11.1 per cent in April — compared to a year ago — and this was its biggest slowdown since March 2020, according to figures from its National Bureau of Statistics.

Posted , updated 

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