Because of the general global situation of uncertainty, investor trust in the market was slashed down. The ASX200 index fell by 1.4%, a sign of worries about the weak earnings reports and the decreasing confidence of consumers in the sectors, retail and real estate, essential for the economy.

This comes against the backdrop of the same diffuse market environment in the Asia-Pacific region, with effects of geopolitical tensions as well as changes in trade policy, which were considered pessimistic.

The fall in the prices of commodities such as coal and iron ore was the main reason for the slump in the mining sector of Australia, which used to be the cause of the fluctuation in the middle of the year.

The company that got the notice about the financing norms maintained by the lending institution also gave up starting a project for the construction of houses, hence the decrease in the activity of property developers.

As soon as the RBA exposed the concerns to the market, some companies began to worry by holding on to investments in the construction project because the earnings growth and the value of their shares fell.

In the Reserve Bank of Australia’s latest public discussion, it was mentioned that the rates of the central bank have remained low purposefully to support the economic recovery.

However, it warned that the inflationary effects might take a different direction than the previously anticipated one and may necessitate some adjustments. Accordingly, the actual accessible fiscal policy will still be the key, but structural reforms and diversification are a must to correct the flaws in Australian society.

In spite of this, healthcare has shown its strength in the midst of the downturn. Medicine stocks have been saviors now that the demand for medical services and drugs is on the rise both in the local and international markets.

Besides, the companies engaged in the field of cloud computing and cybersecurity software, entrenched as trends of the global digital transformation, are hot lately and steal the show in the field.

Monitoring the releases of forthcoming economic indicators by the market players will be focused on to get new perspectives about the direction of the Australian economy, to which the global path is changing, as well.