Complacent market drifts lower as economic outlook sours

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Subscribe: http://ab.co/1svxLVE Read more here: The Australian share market has closed lower for the week after a three week stretch of gains. A lack of clarity on when the Middle East conflict may be resolved and fears of a softening economic outlook appeared to encourage modest selling among investors. The ASX 200 fell 0.1% on Friday to take the weekly decline to 0.2%. The index ending at 8,947. The decline was at odds with Wall Street, where the S&P 500 continued to touch new highs. Director at NAB Trade, Gemma Dale says "it does feel like there's a real sense of complacency about some of the risks facing the economy at the moment." She says investors may be trying to ensure they're positioned for the upside if peace in the Middle East occurs quickly. But Gemma Dale also highlights the flow on effects from supply issues for economic inputs like oil and fertiliser as something investors should be paying more attention to. "That could have extraordinary impacts on the global economy, and they do not feel like they're priced in right now." She says. This week, the IMF warned of the risk of a global recession if the energy shock drags on and oil prices hit $US110 - $US125 a barrel this year and next. The conflict is already weighing on the minds of business operators, with NAB's latest survey showing sentiment slumped in March echoing GFC and COVID falls. At the same time, markets are pricing in a 76 per cent chance of a May interest rate hike, the third in 2026. #ABCNEWS #A

Published 2026-04-17 · Watch on YouTube ↗
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