• ASX closes Friday 1.85% lower, almost 8% for the week
  • It follows a selloff in global equity markets on recession concerns
  • Australian Agricultural (AAC) rises 7% after Andrew Forrest raises his stake through Tattarang


Local shares dived by 2% on Friday and inched closer towards bear territory, as a selloff in equities spreads globally.

The ASX 200 index is now down by 15% from its last peak in April, and a further 5% selloff would officially tip it into a bear market.

Overnight, Wall Street and European markets were crushed as rate increases around the world stoked worries of a global recession. The Bank of England and Swiss National Bank (SNB) became the latest central banks to hike their rates, after both increased rates by 25bp and 50bp respectively.

“It was probably the SNB that broke the camel’s back, because if the Swiss are worried about inflation, we all should be,” said Oanda market analyst Jeff Halley.

“My overall take on the state of play for markets at the moment is that even the most ardent buy-the-dipper in the equity space is starting to realise inflation is a threat, with central bank banks prepared to hike the world into a slowdown and possible recession to get on top of it,” Halley added.

Closer to home, a robust jobs report on Thursday that saw 61,000 new jobs added vs 25,000 consensus could also see the RBA make a back-to-back 50bps rate hike in July.

Governor Philip Lowe’s speech on Monday is expected to give investors more clues to his current state of thinking.

On the ASX today, 10 out of 11 sectors fell, with Staples the only one to have escaped the slaughter. Energy, Mining, Tech, and Financials all slipped by around 2-3%.



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Australian Agricultural (ASX:AAC) rose 8% as Twiggy Forrest’s Tattarang increased its stake in the company from 7.90% to 17.41%.



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GUD Holdings (ASX:GUD) crashed by 20% after a downbeat guidance.

The company, which owns a portfolio of assets in the automotive aftermarket and water products sectors, has downgraded its full year FY22 underlying operating earnings to $147m, down from its previous guidance of $155m ~ $160m.