World News – UA – ASX drops, as global stocks drop over COVID-19, US election concerns

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Australian stocks fell sharply, after global markets collapsed overnight over concerns about increasing COVID-19 infections around the world and the possibility of a United States disputed election result

The benchmark ASX 200 closed 95 points lower (-16pc) at 5956, with almost all stocks in the red

Over the past week, the market has slipped almost every day, wiping out all the gains it had made since early October

Overnight it sank (-13 pc) as low as 7039 US cents and 704 Japanese yen, due to growing demand for « safe haven » currencies

Asia-Pacific markets have also felt the negativity, including New Zealand’s NZX 50 (-07pc), Hong Kong Hang Seng (-12pc), Shanghai Composite (-02pc) ) and Nikkei from Japan (-07 pieces)

Many of the weaker ASX stocks were gold miners like Westgold Resources (-89pc), Northern Star Resources (-50pc) and Saracen Mineral (-53 coins)

As job losses continue to rise due to closures, the number of Australians struggling to pay off their mortgages is expected to rise to higher levels than during the global financial crisis

Worst performances also include JB Hi-Fi (-62 pieces), Unibail Rodamco Westfield (-58pc), and Corporate Travel Management (-54 pieces)

Shares of Brisbane-based Orocobre fell (-38pc) after saying lithium prices likely bottomed, although it recovered slightly at the end of the day

The lithium miner also reported a 24% drop in quarterly production at its flagship Olaroz mine in Argentina, which was hit by operational restrictions linked to the coronavirus

On the other hand, Whitehaven Coal (46pc), Coles (16pc), Viva Energy (12pc) and IGO (28pc) were some of the best

ANZ shares fell (-24pc) after revealing that its annual profit fell 40% to $ 3.6 billion, and massively cutting its final dividend

The bank also unveiled an ambitious new climate policy that could threaten the viability of Australia’s fossil fuel industry

Effective immediately, ANZ will stop lending money to new customers who derive more than 10% of their income from thermal coal mining or production

Some of Australia’s biggest companies have seen big losses: Commonwealth Bank (-05 coins), Westpac (-2 coins), NAB (-15 coins), BHP (-22 coins), Rio Tinto (-11pc) and CSL (-1pc)

Ailing department store president Myer resigned, four hours before the company’s annual general meeting, scheduled for 2 p.m. AEDT

While we often look at housing markets in cities and even across the country as a whole, there are all kinds of local and house-specific factors that drive prices – often quite heavily. >

He was tasked with leading the company through COVID-19 and presiding over its recovery strategy after years of dismal results

During this period, Myer’s management has come under intense pressure from its largest shareholder, veteran retailer Solomon Lew’s Premier Investments, who has a 10% stake of 8%

« It has become apparent that Myer’s two major shareholders do not support my re-election and I will not allow my current tenure as chairman to be a distraction from the hard work of the management team, » said M Hounsell in a press release before Myer’s AGM

Independent director JoAnne Stephenson would replace Hounsell until a permanent replacement can be found, Myer said

The company that owns the Noni-B, Millers, Rivers and Katies retail brands will close hundreds of stores by the middle of next year, leading to significant job losses

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This was in addition to the 73 stores that their owner, Mosaic Brands, had already closed since August

Mosaic criticized shopping center owners for not providing enough rent relief as it battles COVID-19 and the impact on its business

« We are encouraged that a number of landlords have spoken out in recent weeks on rent cuts, but not all and we expect up to 250 additional store closures by June 2021, » said Scott Evans, Managing Director of Mosaic

In August, Westfield shopping center owner Scentre Group kicked hundreds of Mosaic employees from their retail stores over a bitter rent dispute

Mosaic reported an annual loss of $ 170 million for fiscal year 2019-2020, but expects to return to profitability next year

Investors ditched their Seek shares after a short seller accused the company of over-inflating the value of its Chinese business – specifically, job search website Zhaopin

Seek’s share price fell (-59pc) to $ 21.51, which prompted the company to suspend its shares « pending a new announcement »

Zhaopin’s rapid growth was a major factor in Seek’s market valuation ($ 7 6 billion), based on its current price ($ 21 51)

However, Blue Orca claimed in its report that Seek’s China jobs website is filled with unwanted ads or « zombies » – making it more valuable than it actually is.

Short seller thinks Seek should be worth a lot less, at $ 720 per share This implies a market value of $ 2.5 billion

Twelve US states on Tuesday set new records for hospital patients with COVID-19, as Germany announced plans for a nationwide lockdown and France prepared for tighter controls as the pandemic increased to across Europe

« Obviously the virus is out of control It’s a spike, it’s bad, » said Eric Kuby, chief investment officer at North Star Investment Management Corp in Chicago

Follow the twists and turns as Donald Trump and Joe Biden face off in the race for the White House

On Wall Street, the Dow Jones index fell 942 points (-34pc) to close at 26521, back to where it was at the end of July

The wider S&P 500 fell (-35pc) to 3271 points, while the Nasdaq fell (-37pc) to 11.005 points on Wednesday local time

Apple, Alphabet (parent company of Google), Amazon and Facebook are expected to release quarterly results on Thursday

All of these big tech companies fell at least 3% and were the biggest drag on US markets

Microsoft’s quarterly earnings exceeded analysts’ targets, benefiting from a pandemic shift to working from home and e-learning Its shares, however, fell about 4%, after having increased by almost 35% so far this year

Over the week, the Dow and S&P have lost 64 and 56 percent so far They are on track to deliver their worst weekly performance since March

European stock markets have fallen to their lowest level since May, including Britain’s FTSE (-26pc), German DAX (-42pc) and France’s CAC (-34 coins)

With just six days before the election, Wall Street’s fear gauge (the VIX) briefly passed 40 points, its highest level since June 15

Investors fear that a winner will not be declared on the night of November 3 due to a delay in counting the huge volume of postal ballots

Spot gold fell (-18 coins) to US $ 1,87770 an ounce, as investors stacked in « safe haven » currencies like the US dollar and Japanese yen

Escalating coronavirus infections have weighed on oil prices by fueling fears of oversupply and weaker demand for fuel

« It is certain that the increase in oil production has led to an unexpected build-up of crude oil and, given the additional lockdowns we are seeing in Europe, this only adds to new bad news on the oil market, « said Andy Lipow, president of Associates Lipow Oil Consultants

Brent dipped (-5pc) to US $ 3913 a barrel, while West Texas crude tanked (-56pc) to US $ 3734 a barrel

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AEST = Australian Eastern Standard Time, which is 10 hours ahead of GMT (Greenwich Mean Time)

Myer, Garry Hounsell, Solomon Lew, Board of Directors

Global news – AU – ASX drops, as global stocks drop amid COVID-19 and election concerns American


SOURCE: https://www.w24news.com