Slowing economy takes toll on corporates
One of the worst corporate results seasons since the world-wide financial crisis has exposed the vulnerability of the Australian sharemarket to a slowdown in economic growth exacerbated by the US-China trade war.
Australia’s S&P/ASX 200 benchmark index hit a five-week high of 6656.1 points this week amid easing geopolitical risks — particularly in regard to the trade war — as the US and China agreed to restart talks early next month.
Still, Australia’s economy this week recorded its weakest growth since the GFC. GDP went up by just 0.5 percent over the June quarter, or 1.4 percent for the year, equal to the worst annual growth since the GFC in 2009.
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