Retail sales on COVID-19 locks decreased, ASX slips as oil prices rise three-year high

Australian stocks plunged into initial trading as oil prices plunged three-year high and tech stocks fell on Wall Street.

At 11:50 AAS, the ASX 200 index dropped 0.9 percent to 7,321 points.

The Australian dollar fell to $ 72.8 on Tuesday morning.

According to the latest figures from the Bureau of Statistics (ABS), sales locks continue to weigh heavily on Australian retailers.

Retail sales declined 2.7 percent to $ 29.3 billion in August, following a 2.7 percent decline in July and a 1.8 percent slump in June.

The experience of NSW, Victoria and the ACT will fall “within their respective boundaries,” said Ben James, director of extensive research at ABC’s Quarterly Economy.

In direct contrast, states with no key locks will enjoy strong increases as Western stores open for business with Western Australia and South Australia.

“Another Full Month Lock” has caused a huge drop in retail transactions in NSW. As of April 2020, it is down 3.5 percent.

Victoria’s exchange rate declined by 3 percent. However, the fast-track lockout on August 5 saw the region’s recession plummet to 19.9 percent.

The closure of the bodybuilding industry in Australia, clothing, footwear and personal accessories retail (-15.7 pcs), cafes, restaurants and catering services (-7 pcs), department stores (-10.2 pcs), and in-house retail -2.3pc).

Increasing fuel will increase the energy sector

As oil leaped for the fifth day, energy reserves increased. Some of today’s top performers are Beach Energy (+7.9 pcs), Whitehaven Coal (+4.6 pcs), Original Energy (+3.3 pcs), Woodside Petroleum (+3.7 pcs), Santos (+4.6 pcs) and Oil Exploration (+ 4.4) were. pc).

Bright crude futures rose 1.8 percent ($ 79.53 per barrel) in the wake of rising demand in parts of the world.

The rise in oil prices has led to speculation that global inflation will last longer than expected, prompting central banks to take action and raise interest rates in conjunction with interest rates.

“It is a positive story because we have a strong economic macro-history that is based on everything,” said Fahd Kamal, chief investment officer at Cleenwort Hamburg in London.

Mr Kamal has expressed interest in slowing down the epidemic in central banks, which has boosted bond production (or government borrowing costs).

Healthcare and technology companies have performed poorly in the Australian market. They suffered major setbacks such as Pro Medicus (-5.6pc), Megaport (-7.1pc), TechnologyOne (-4.6pc), CSL (-3.3pc) and Xero (-3.9pc).

Technology comes down to higher rates

U.S. markets are mixed, with the industry’s heaviest Dow Jones Industrial Average Nasdaq technology stock index.

Dow rose 0.2 percent to 34,869 points. The SSP 500 lost 0.3 percent to 4,443.11, while Nasdak Composite lost 0.5 percent to 14,970.

“Technology stocks are highly valued, which means they are paying for future growth, and high interest rates are the brakes for future growth,” said Tim Grissky, chief investment strategist at Inverness Counsel in New York.

U.S. Treasury (10-year bonds) continued its recent voyage overnight. For the first time since June, strong economic data has risen to 1.5 percent and the Federal Reserve is moving towards a more monstrous policy.

Spot gold stood at $ 1,750.46.

ABC / Reuters

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