A $1.9 billion takeover bid failed to brighten the mood on the sharemarket as troubles with US lender First Republic Bank revived fears of a recession.
The Australian share market fell to a two-week low on Thursday in broad losses as troubles with Silicon Valley lenderNot surprisingly, investors gave a wide berth to the financial sector. All major banks retreated between 0.2 per cent and 0.8 per cent. Regional lenders suffered the most with Bank of Queensland down 2.7 per cent to $5.78 and Suncorp 1.1 per cent lower at $12.4.
It was a good day for gold miners with the price of the precious metal back at the $US2000 mark. Spot gold rose 0.5 per cent to $US2000.70 per ounce and gold futures rose 0.6 per cent to $US2,008.10. Gold has rallied 10 per cent this year as investors embraced the safe haven asset on worries about a recession.
Takeover target United Malt slumped 34.7 per cent to $4.43 after downgrading its first-half earnings guidance as more evidence emerges that beer drinkers are tightening their belts in response to inflation.Brick maker Adbri tumbled 6.1 per cent to $1.54 after costs of its Kwinana upgrade project more than doubled from higher construction prices, labour shortages and supply chain disruptions.
showed a softening in price pressures, giving the Reserve Bank of Australia some breathing room to assess how the economy is faring after the fastest monetary tightening in a generation.
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