The Australian Securities Exchange (ASX) has remained in pessimistic territory after the nation’s unemployment rate jumped drastically as of April’s statistics.
The ASX200 benchmark index managed to pull up slightly from it’s early morning losses to land at 0.96 percent down at time of publication. The ASX200 fell down after this loss to 5,369.90 points.
The All Ordinaries managed to also snatch back a small portion of its early morning losses, losing at time of publication just under one percent, at 5,459.90 points.
The day's retraction was on the back of the revelation that almost 600,000 Australians had lost their jobs in April. Australian federal treasurer Josh Frydenberg called these statistics ‘heartbreaking’.
The unemployment rate has now been officially quoted at 6.2 percent.
The ASX was down at the commencement of trade following overnight signals that the USA might be looking down the barrel of a long, multi-year recession. Concurrently, the ASX200 immediately slumped 1.32 percent in the first 15 minutes of trade, as the All Ordinaries also suffered a loss of the same percentage in the morning open.
The above-mentioned scepticism from the US market derived from the Dow Jones Industrial being down by 2.17 percent, the S&P500 down by 1.75 percent, and the NASDAQ being down by 1.55 percent.
The stock markets globally have often rallied at points of economic pessimism, and fell at times of optimism. This current reaction seems to follow a more rational response to market conditions.