Australian shares have weakened since Monday in energy and healthcare sectors due to the rapid bushfire raging across the eastern coast of Australia and as a cautious step to US-China Phase1 Trade deal.
The S&P/ASX 200 index was down 0.4 % at 6,903.70 and the benchmark ended 0.8 % higher on Friday. China’s Vice Premier Liu is expected to visit Washington to close the deal this week. It is however not clear what the two countries have finalized on signing as the translation of the deal is incomplete.
Since the markets are keen on prospecting the phase 2 deal which will clear the air for phase 1 deal. Major issues such as enforcement of the deal might as well come in negotiation in future, as per the analysts at Mizuho.
Many foreign investors are unpredictable about the economy of Australia due to the bushfires last week that has claimed into 27 deaths and 10.3 million of hectares of land making the markets very dicey.
According to the reports of RBC, the bushfires has resulted into the Gross domestic product to 2.1 % however the previous forecast was 2.4 % and is likely to impact the fiscal growth in 2020.
Australia’s energy sub index ended to 1.1% lower claiming the worst session since Dec 31,2019 after it was impacted by the drop in oil prices due to the conflict in US-Iran.