5 Big News That Influenced ASX on 08 March

On 08 March 2022, ASX200 dropped 58.30 points lower closing at 6,980.30. Australian shares have been closing at week low lately due to global equity sell- off created by Russia-Ukraine war. Over a period of 5 days ASX dropped 1.64% and now sits just 4.99% above its 52-week low and here are some of latest happenings that have affected the Australian market over this period -

Omicron Resurgence & Rise in Cases

While Eastern Australia is in recovery mode, COVID cases have been on the rise again leading to Perth’s Central business district becoming a ghost town as their office occupancy decreased to 55% which is the lowest since July 2020. New South Wales recorded 13,018 new cases and 5 deaths while Victoria recorded 7043 cases and 6 deaths. In totality Western Australia recorded a spike of 2847 cases by itself on Tuesday which led to Scientists suggesting the emergence of new variants and return of influenza which will further force office workers to sit at home and quarantine. 

Prime Ministers Key Note

Prime Minister Scott Morrison addressed the public about budget cuts saying that the government will not cut their expenditure to bring the budget back into surplus as the government is planning the economic recovery post 2 years of pandemic. He also made remarks about driving economic growth by letting private sector companies to take control. Along with other decisions regarding budget cut, he approved Western Sydney Airport (plan raised in 1960s) committing to net zero emissions by 2050.

Rising tensions between Russia & Ukraine

Post 12 days of war and trying to “De-Nazify” the country, Vladimir Putin’s plans for war are not going as they expected with their troops taking significant losses in the north even after recording little success down south. With the country crippling due to numerous economic sanctions, Moscow has decided to cut the war short making a list of demands to pursue peace on their terms. Ukraine is now left with little to no options but to reject the deal which may lead Russia stepping up its invasion. The following are the few of the demands from Moscow -

• Ukraine Must Cease fire
• Kyiv must not join EU or NATO
• Recognition of Crimea, Donetsk and Luhansk as Russian territory

Nickel price Surge

The price of nickel traded in London zoomed to nearly 90% ($US55,000 per tonne – settling at $US50,925 per tonne) marking a record high single day gain in the 3-month LME contract’s history. Due to the increasing supply for Russia, Sellers are rushing to the sidelines leading to decrease in liquidity, buyers are now experiencing a compression in output produced predicting tough times ahead.

Narrabeen Lagoon Flooding

Citizens of Sydney and New South Wales have been ordered to evacuate by tonight as thunderstorms and intense flooding forecast predictions have shaken the city. With the flood water estimated to reach atleast 2 meters high, residents surrounding Narrabeen lagoon have also been ordered to clear the area or they will be left without all essential supplies including electricity and water.

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