According to AMP economist Shane Oliver, there is a significant chance of Australia experiencing a recession within the next year due to the shrinking economy. Oliver expressed this concern to clients, stating that the risk of recession in Australia is now elevated. He believes that the Reserve Bank of Australia has taken sufficient measures to curb the economy and restore inflation to its target level. However, he cites several indicators of declining demand, such as decreasing real retail sales, declining building approvals, a slowdown in business investment plans, slower GDP growth, and initial signs of a decelerating job market.
The energy sector has experienced a setback as oil prices plummeted overnight due to apprehensions about the global economic outlook amidst increased interest rates in the United Kingdom and Norway.
At the closing bell, the S&P/ASX 200 was 1.34 per cent lower at 7,099.20.
FuturesThe Dow Jones futures are pointing to a fall of 126 points.
The S&P 500 futures are pointing to a fall of 19 points.
The Nasdaq futures are pointing to a fall of 67 points.
The SPI futures are down 92 points.
Best and worst performersThe best-performing sector was Utilities, up 0.13 per cent. The worst-performing sector was Energy, down 3.97 per cent.
The best-performing large cap was Endeavour Group
(ASX:EDV), closing 1.95 per cent higher at $6.27. It was followed by shares in EBOS Group
(ASX:EBO) and Infratil
(ASX:IFT).
The worst-performing large cap was Woodside Energy Group
(ASX:WDS), closing 4.55 per cent lower at $33.74. It was followed by shares in Santos
(ASX:STO) and Cochlear
(ASX:COH).
Asian marketsJapan's Nikkei has lost 1.45 per cent.
Hong Kong's Hang Seng has lost 1.86 per cent.
China's Shanghai Composite has gained 0.95 per cent.
Company newsTamboran Resources
(ASX:TBN) made several announcements this morning. The Amungee 2H (A2H) well in EP 98 has achieved gas breakthrough. The company has completed analysis of two flow tests in the Santos-operated EP 161 permit, in which Tamboran owns 25 per cent. Tamboran has signed two MOUs with BP and Shell for supply of 4.4 MTPA of LNG from the company’s proposed NTLNG development. And, lastly, the company has selected APA Group as preferred Beetaloo Basin pipeline partner. Tamboran is currently in a trading halt and last traded at 20.5 cents.
Solis Minerals
(ASX:SLM) has announced that drilling has commenced at Jaguar Lithium Project in Brazil. Executive Director, Matt Boyes, commented: “The program is designed to provide our first indication of the potential strike, depth and thickness, along with confirmation of mineralisation style and grade.” Shares closed 6.31 per cent higher at $1.01.
North Stawell Minerals
(ASX:NSM) has announced visible gold and high-grade gold results returned in down-plunge diamond drilling at the Wildwood project in Victoria. Chief Executive Russell Krause said: “Targeting the down-plunge continuation of mineralisation beneath the historic Inferred Mineral Resource has added significant confidence in the continuity of plunging mineralisation.” Shares closed flat at 12 cents.
Commodities and the dollarGold is trading at US$1,925.40 an ounce.
Light crude is trading $0.83 lower at US$68.68 a barrel.
One Australian dollar is buying 66.97 US cents.
