Global Markets | Australian shares close at two-week low, Cochlear crashes 41%
Australian stocks hit a two-week low on Wednesday. The S&P/ASX 200 index fell significantly. Cochlear, a major company, saw its shares plummet by 41%. This drop impacted the broader healthcare sector. Financial stocks also declined. Miners saw a s...
By Reuters |
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Australian equities slid to a two-week low on Wednesday as sentiment remained subdued despite the United States' indefinite extension to the Iran ceasefire, while a 41% plunge in sector heavyweight Cochlear also added pressure.
The S&P/ASX 200 index fell 1.2% to 8,843.60 points, its lowest close since April 7, marking its steepest single-session decline since mid-March.
U.S. President Donald Trump said he would indefinitely extend the Iran ceasefire, but the move appeared unilateral, with no clarity on whether Iran or U.S. ally Israel would agree, sapping risk appetite.
Risk-on sentiment has dampened as markets move into a more uncertain environment than last week, with investor positioning still driven by headlines and marked by volatility and low conviction, said Justin Lin, investment strategist at Global X ETFs.
Cochlear slumped about 41%, wiping out nearly A$4.5 billion ($3.23 billion) in market value, in its worst session ever after the hearing implants maker sharply downgraded its annual underlying earnings forecast.
That pushed the broader healthcare sub-index 6% lower to its weakest level since April 2018.
Financials dropped 2.3%, their biggest fall since September 3, with all "big four" banks losing between 2.1% and 2.5%. Bank of Queensland fell 9.1% on lower first-half cash earnings.
Higher interest rates could discourage borrowers from seeking loans, as increased financing costs tend to reduce affordability and weaken demand for credit.
Sticky inflation could force the central bank to continue tightening, with swaps implying nearly a 75% chance of a 25-basis-point rate hike to 4.35% in early May.
Miners edged 0.1% higher. BHP gained 1.2% on strong third-quarter iron ore output.
Energy stocks fell 0.7% to their lowest since March 11, while gold stocks fell 1.7%.
Tech stocks and consumer staples added 0.3% and 1.1%, respectively.
In New Zealand, the benchmark S&P/NZX 50 index rose 0.1% to 12,945.60 points. ($1 = 1.3947 Australian dollars).
The S&P/ASX 200 index fell 1.2% to 8,843.60 points, its lowest close since April 7, marking its steepest single-session decline since mid-March.
U.S. President Donald Trump said he would indefinitely extend the Iran ceasefire, but the move appeared unilateral, with no clarity on whether Iran or U.S. ally Israel would agree, sapping risk appetite.
Risk-on sentiment has dampened as markets move into a more uncertain environment than last week, with investor positioning still driven by headlines and marked by volatility and low conviction, said Justin Lin, investment strategist at Global X ETFs.
Cochlear slumped about 41%, wiping out nearly A$4.5 billion ($3.23 billion) in market value, in its worst session ever after the hearing implants maker sharply downgraded its annual underlying earnings forecast.
That pushed the broader healthcare sub-index 6% lower to its weakest level since April 2018.
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Financials dropped 2.3%, their biggest fall since September 3, with all "big four" banks losing between 2.1% and 2.5%. Bank of Queensland fell 9.1% on lower first-half cash earnings.
Higher interest rates could discourage borrowers from seeking loans, as increased financing costs tend to reduce affordability and weaken demand for credit.
Sticky inflation could force the central bank to continue tightening, with swaps implying nearly a 75% chance of a 25-basis-point rate hike to 4.35% in early May.
Miners edged 0.1% higher. BHP gained 1.2% on strong third-quarter iron ore output.
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Energy stocks fell 0.7% to their lowest since March 11, while gold stocks fell 1.7%.
Tech stocks and consumer staples added 0.3% and 1.1%, respectively.
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In New Zealand, the benchmark S&P/NZX 50 index rose 0.1% to 12,945.60 points. ($1 = 1.3947 Australian dollars).
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