Jit­ters over China shares

Townsville Bulletin - - NEWS -

A RE­NEWED steep sell- off on the Chi­nese share mar­ket risks un­der­min­ing im­prov­ing lev­els of con­sumer con­fi­dence in Aus­tralia.

Just as con­sumers ap­peared to be slowly get­ting over their wor­ries for the Aus­tralian eco­nomic out­look ear­lier this month, caused by the fall­out over the Greek debt cri­sis and China’s eco­nomic woes, Chi­nese share prices have taken another hit.

Aus­tralian shares opened 0.9 per cent lower yesterday fol­low­ing weak global mar­kets in the wake of an 8 per cent slump in Chi­nese shares, the big­gest one- day drop in eight years.

The ANZ- Roy Mor­gan con­sumer con­fi­dence gauge rose 0.6 per cent in the past week, build­ing on the 4.5 per cent re­cov­ery of the pre­vi­ous week.

“The fact that con­fi­dence has held the pre­vi­ous week’s bounce is a pos­i­tive sign that con­fi­dence could con­tinue to re­cover in com­ing weeks in the ab­sence of fur­ther mar­ket volatil­ity,” ANZ chief economist War­ren Ho­gan said re­leas­ing the fig­ures yesterday.

Other data showed that de­spite the un­set­tled na­ture of con­sumer con­fi­dence in re­cent months, it hasn’t put peo­ple off ap­ply­ing for loans or new credit cards.

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