Australian Indexes Drop 1.6%, Auto Sales Fal 2%

Marcus Jacob
06 Jan, 2015
New York City

Australian market indexes declined 1.6% following the market decline in Europe and New York. Australian automotive sales declined 2% in 2014 and but luxury car sales rose.

[R]5:30 PM Sydney – Australian market indexes declined 1.6% following the market decline in Europe and New York. Australian automotive sales declined 2% in 2014 and but luxury car sales rose.[/R]

Australian market indexes declined following Asia-wide sell-off after indexes in Europe and in New York dropped between 2% and 4%.

Investors sold stocks in Europe on the growing worries that Greece may renege its financial obligation to international lenders as the nation approaches snap election and political rhetoric heats up.

In addition, Germany reported 0.1% increase in inflation index in December, sharply lower than the inflation target set by the European Central Bank. Investors worried that stagnant prices may entrench deflationary forces in the largest economy in the euro zone.

The Australian Bureau of Statistics reported trade deficit in November widened to $925 million, less than estimated $1.6 billion following a deficit of $877 million in October. Both exports and imports increased 1% from the previous month.

Federal Chamber of Automotive Industries reported 2014 automobile sales declined 2% to 1,113,224 units compared to a year ago period.

Automotive sales topped 1.1 million for the third year in a row and were above one million for the seventh times in the last eight years. Sales of SUV accounted for 32% of total sales and Toyota led the industry with sale of 203,501 vehicles.

Australian dollar closed at 81.32 U.S. cents and in stock-trading turnover climbed to 670 million shares worth $4.34 billion.

ASX 200 Index dropped 85.50 or 1.6% to 5,364.80 and broader All Ordinaries Index slumped 83.30 to 5,346.20.

In commodities trading, gold jumped $15 to US$1,207 an ounce and light crude oil declined $2.65 to US$50.04 a barrel. Brent Crude declined 47 cents to close at US$60.11 a barrel.

Australian Stock Movers

Coca-Cola Amatil Limited rose 0.2% to $9.21 and the beverage maker said it would hold negotiation with the government of New South Wales about the proposed drinks container deposit scheme.

UXC Limited closed unchanged at 75 cents after the business solution provider said $494 million payment said a settlement between Kilmore East Class Action and Utility Services Corporation was approved by the Victoria Supreme Court on December 23.

Virtus Health Ltd gained 0.9% to $7.96 after the healthcare service provider’s Irish subsidiary completed the acquisition of the HARI clinic for about $8.85 million or €6 million.