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Australia shares slip; unemployment at 22-year high, virus woes hit sentiment

Published 16/07/2020, 04:35 pm
© Reuters.
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* Gold stocks down as bullion prices slip

* Energy stocks fall on lower oil prices

* NZ lower (Updates to close)

By Nikhil Subba

July 16 (Reuters) - Australian shares ended lower on Thursday, after the country's unemployment rate hit a 22-year peak and rising coronavirus cases in some states raised a likelihood of harsher curbs, reminding investors of the impending economic pain.

The S&P/ASX 200 index .AXJO fell 0.7% to 6010.90 at the close of trade. The benchmark rose 1.9% on Wednesday.

Australia's unemployment rate shot up to 7.4% in June, from 7.1% in May, and the highest since November 1998, according to figures from the Australian Bureau of Statistics, as workers re-entering the workforce were unable to find full-time jobs. nationwide (employment) recovery is likely to be slower, as consumer and business confidence is undermined, demand is more fragile and businesses more cautious about hiring," Catherine Birch, a senior economist at ANZ, said in a note.

"Melbourne workers will feel the worst of it, regional Victoria will also be affected."

Meanwhile, harsher restrictions are set to be imposed in Australia's most populous states, New South Wales and Victoria, if the COVID-19 outbreak is not quickly brought under control. officials reported 327 new infections on Thursday, a surge that was almost entirely in the state of Victoria, bringing the national tally to nearly 11,000 cases.

Gold stocks .AXGD fell 1.6% as bullion prices slipped. Dacian Gold Ltd DCN.AX , closed down 6.1%, while Emerald Resources NL EMR.AX fell 4.9%

Gold XAU= fell 0.15% to $1,807.20. GOL/

The broader metals and mining index .AXMM fell 0.8% with heavyweights BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX both falling around 1%.

Healthcare stocks .AXHJ fell 1.5% lower, weighed by industry behemoth CSL's CSL.AX 2% skid.

Energy stocks .AXEJ fell 0.9​% as oil prices slipped. Santos STO.AX fell 2.3%, while Viva Energy Group Ltd VEA.AX shed 2.3%.

In New Zealand, the S&P/NZX 50 index .NZ50 fell 0.9% to 11,505.06.

Top losers on the benchmark were Pushpay Holdings PPH.NZ down 3.9% and A2 Milk Co ATM.NZ down 4.5%.

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