News dalla rete ITA

5 Gennaio 2021

Australia

PANDEMIC LOCKDOWNS COULD HURT MARKET CONFIDENCE

The bullish investor sentiment that drove a record run on the local share market through the December quarter could be dented by the rising number of COVID-19 cases, as states reimpose strict border and lockdown rules.New South Wales and Victoria have implemented restrictions on gatherings while others have begun to mandate quarantine periods for Victorians entering their state. Most had already closed their borders to New South Wales.The local share market fell heavily in the final session of 2020, tumbling 1.4 per cent at the close ahead of a long weekend where cases were expected to rise. Momentum in equity markets was strong in the last quarter and the Australian share market closed just over 1 per cent shy of recouping its losses for the year.The S&P/ASX 200 Index closed its best December quarter on record despite the market sliding through the final two weeks of the year. Economists are forecasting record economic growth in the months ahead as the globe recovers from the pandemic. Investors are tipping that will boost sentiment and markets will extend their strong end to 2020.If earnings remain robust, the latest lockdowns are likely to have only a minimal effect on the local market with economists saying the outbreaks are likely to be brought under control, supporting the domestic recovery.Australia's strong response to the COVID-19 pandemic is evidenced by the strength of the Australian dollar, which rose above US77¢ for the first time since April 2018 on December 31. Australia had proved to be effective in stamping out the virus previously and that would make it a very attractive destination for overseas flows. (ICE SYDNEY)


Fonte notizia: The Australian Financial Review 03.01.2021