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ASX to bounce amid iron ore crash, govt to tackle labour shortage

·Contributing editor
·2-min read
How Australia’s iron ore price crash will affect the economy. Source: Getty/Reuters
How Australia’s iron ore price crash will affect the economy. Source: Getty/Reuters

Good morning.

Here's what you need to know about finance markets for today.

ASX: The Australian share market looks set to bounce back on Monday supported by an expected rebound of iron ore prices. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points higher this morning.

Global markets: It was a positive start to the week on Wall Street, which saw the Dow Jones rise 0.6 per cent, S&P 500 increase 0.85 per cent and Nasdaq hike 1.6 per cent. The FTSE was up 0.4 per cent by the close yesterday while the DAX was 0.3 per cent higher following German flash PMI numbers. France's CAC was also 1 per cent higher.

Aussie dollar: The Australian dollar has dropped futher, trading at 0.7207 to the US dollar as at 7am this morning.

Iron ore crash: Iron ore's price has experienced a huge crash with a whopping 40 per cent drop in the past month alone, falling from a high of US$233 (A$325) a tonne to below US$130 (A$181). With China accounting for up to 75 per cent of the world’s iron ore imports, Australia's most valuable export commodity has been hit hard by new policies introduced by the country, including cutting steel outputs. Here's how.

Agriculture visa: The federal government will introduce a dedicated agriculture visa to help fill a COVID-induced labour shortage across the farming, fisheries and forestry sectors. The Australian Agriculture visa, aimed at enticing Pacific and Southeast Asian workers, is not capped and will include pathways towards permanent residency and regional resettlement.

Grant change: The Australian Research Council says it is “looking into” a controversial rule change that affects academic grant applications, amid growing political pressure and criticism from the Australian research community. More than 450 “concerned members of the Australian research community” have called on the Australian Research Council (ARC) to reconsider a rule that bans applicants from citing preprint material in proposals for funding.

Rebound: Confidence among the Australian community will be a key factor in how quickly the economy recovers from its current downturn.The economy is widely expected to contract in the September quarter as a result of rolling lockdowns around the country, and there are concerns that this may extend into at least the early part of the December quarter.

Have a great day.

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