Evergrande implodes $200B lost, Aussie economy shaky

31 January, 2024
As of 9 am, AEST.

Gold Spot Price $AU3089

Silver Spot Price $AU35.20

Platinum Spot Price $AU1419

Chinese property giant Evergrande has formally been declared bankrupt and a court order has been imposed to turn over its assets to liquidators. While news of Evergrande struggling over the past years isn’t new, for a formal court order to now be issued suggests that ‘Evergrande is no more’. It’s now left up to the economy to absorb the 200B loss from is activities. Markets reacted as expected, throwing further volatility into an already wild investment environment.

And the Australian economic outlook is not a rosy as we were sold, late last year.

Data adjustments for November and December are showing poorer than expected retail sales, as Aussies tightened their belts even further during the Christmas period. For many Australian’s it wasn’t as simple as reducing their spend, but the reality that there literally is no money to spend. As Mortgage repayments continue to pressure the majority of homeowners, little to nothing is left for discretionary spend. Latest survey’s suggest that for an Australian to feel ‘rich’ or not suffer from cost of living stress, they need to earn a whopping $345K per year. With the average full time wage sitting at $74K, this leaves a lot of negative space for stress for most.

With ongoing war and conflict through Gaza and Ukraine, on top of the news above, Gold saw an immediate jump to $US2048 overnight. It has since retraced to $US2036, but is clearly showing us the path it would like to take in the coming weeks.

Enjoy today’s charts. This Friday we’ll look closely at the FED’s upcoming interest rate decision and how this could affect Australians.

Gold daily, with 200MDA

Silver daily, with 200MDA

US500, with 200MDA

ASX200, with 200MDA