Latest news with #JessicaAmir
Yahoo
23-06-2025
- Business
- Yahoo
Superannuation warning after $25 billion ASX bloodbath as US-Iran tensions escalate
Australians are being warned not to panic if their superannuation balance goes down as tensions between the US and Iran escalate. American stealth bombers attacked a series of nuclear sites in the Middle Eastern country over the weekend. Outbreaks like this can cause volatility on the share market and see investors sell off their assets. This was seen on Monday after the opening bell, with the ASX 200 falling 44.30 points or 0.52 per cent. It ended up being a $25 billion drop by lunchtime, according to IG market analyst Tony Sycamore, and the futures markets in the US are predicting similar drops when they open tonight. With Aussie super accounts heavily invested in the Australian and US markets, some might see their balances drop sharply over the coming days as a result of this market movement. But Jessica Amir, MooMoo Australia market strategist, told Yahoo Finance it's best to ride out this storm and not move your money around as a knee-jerk reaction $3,000 superannuation boost coming for Aussie parents from July 1 Centrelink payment alert for 58,000 Aussies in caravans Couple's side hustle amid double redundancy secures $13 million fortune "Just take a big-picture approach. Cop it on the chin and suck it up," she said. "Sometimes, the best thing to do is nothing, because markets always recover. "If you were to sell right now, you might be pretty foolish, perhaps even dumb." She added this also comes at a time when many Australian super funds are readjusting their investments before July 1."It's usually every quarter, but the biggest one is the end of financial year because it's all about tax minimisation," Amir said. "And tax loss selling is something that we see, which is basically when a super fund might look to sell the stocks that have done badly during the financial year and claim them as a tax write off against stocks that have gone up over the year." When you add that with what's happening in Iran, as well as the potential for the US central bank to drop interest rates next month, you get a lot of sharemarket volatility. Amir told Yahoo Finance July is typically the best month on the Australian share market. "Investment managers chuck all their money back into the share market [in July], and they're getting ready for the new financial year, and so they're buying those stocks that they think will be growing their earnings," she said. "Also interest rates are expected to be cut, which benefits consumer spending on stocks." While sharemarkets aren't the biggest fans of war, historically there have been big swings in the other direction following large sell-offs. "After every pullback, the Aussie market and the US market have always recovered," Amir said. "You could buy into those stocks, or even just the entire market, during the pullback and hold it for six to nine months, and you'll probably be a lot wealthier." Financial advisor Alex Jamieson, founder of AJ Financial Planning, echoed this sentiment. "History tells us that markets can respond in surprising ways and certain sectors can thrive," he said. 'During World War II, US industrial production surged and equity markets steadily rose after the initial shock. 'In the wake of the Gulf War in 1990, markets initially fell on uncertainty but rebounded strongly once military action commenced and oil supplies stabilised.' Even with the Russian-Ukrainian war, oil, gas, defence and agricultural companies soared while tech stocks suffered. "While conflict creates volatility, it also fuels certain parts of the economy,' he added. 'For super fund members, this means your balance could actually benefit if your fund is exposed to the right areas, such as energy, commodities, infrastructure and defence.' While markets might recover from the volatility caused by what's happening in the Middle East, it might have a much bigger, long lasting impact on everyday costs. The US has asked China to prevent Iran from closing the Strait of Hormuz, which is a naval passageway connecting the Persian Gulf with the Arabian Sea and the rest of the world's oceans. Roughly 20 million barrels of oil flowed through that route every day in 2024, according to the Energy Information Administration. Closing or narrowing that Strait could see oil prices jump considerably. The industry standard Brent price per barrel is already in the high US$70s and there are fears it could spike as high as more than US$100 per barrel. Amir said this could materialise soon at Aussie petrol stations. "It means we're paying higher prices when we fill up," she told Yahoo Finance. "Even if you're filling up your Tesla or your BYD or whatever, much of Australia's energy grid is actually actually powered by fossil fuels, so everything will be passed back to the consumer." She added that higher petrol prices means more expensive freight costs and that could result in supermarkets jacking up their prices to cover these increased in to access your portfolio
Daily Mail
23-06-2025
- Business
- Daily Mail
How a new Iran war threatens to send the cost of living soaring once again - and put up the price of EVERYTHING
A drawn-out war with Iran is now threatening to push up the price of everything in Australia as instability in the Middle East makes crude oil more expensive. That will be passed on through increased petrol and diesel prices at service stations, with higher fuel bills forcing up the cost of transporting retail goods, driving up prices. Now fears are growing the new Middle East crisis will send the cost of living soaring once more and inflict more economic chaos on Australia with rising inflation and interest rates. Iran is threatening to close the vital trade route through the Strait of Hormuz - a narrow body of water linking the Persian Gulf to the Indian Ocean - after the US attacked its nuclear facilities over the weekend. A quarter of the world's oil goes through this channel, and shutting it down would send fuel costs soaring globally, but especially in Australia which imports 90 per cent of its fuel. U.S. Secretary of State Marco Rubio on Sunday called on China - which has strong trade links with Iran - to encourage Iranian leaders to keep the strait open. Moomoo market strategist Jessica Amir predicted any blockade by Iran could see crude oil prices soar from just under $US76 a barrel now to more than $US100 a barrel. 'If Iran retaliates - if China does not stop Iran - then oil prices getting to $100 is very likely,' she told Daily Mail Australia. 'That's a pretty significant increase, and dependent on the Strait of Hormuz being blocked,' Australian motorists are now typically paying $1.78 a litre for petrol but could face paying $2.20 a litre or more, similar to 2022 prices when Russia invaded Ukraine. That would have flow-on effects for the price of goods as transport costs are passed on to consumers. 'People are going to pay these higher prices for transporting goods around for the things that we eat on a day-to-day basis,' she said. 'You would expect the flow-on effect of inflation for the things that you pay in your shopping trolley as well.' The wholesale price of unleaded petrol last week soared by five per cent from $1.60 a litre in Sydney and Melbourne to $1.68 a litre. This increase alone would add $4.40 to the bill for a motorist filling up a Toyota RAV4 SUV with a 55-litre tank. Service stations at Parramatta in Sydney's west are now selling 95-octane unleaded for $2 a litre, still below the crippling prices of 2022 after Russia launched its offensive against Ukraine. But the end of that year, Australia's inflation levels soared to a 32-year high of 7.8 per cent, hitting levels last seen in 1990 when Iraq's invasion of Kuwait led to the first Gulf War. Australia, however, is more vulnerable to higher petrol prices because of its high fuel imports and conservatively has just 54 days' of supply stored on-shore. That is well below the International Energy Agency's requirement for Australia, and other OECD nations, to hold oil stocks equivalent to 90 days' worth of net imports. The nation also has further substantial fuel reserves in the US and would need to be shipped over. Only two oil refineries still operate in Australia at Lytton in Brisbane and Geelong, west of Melbourne. The Kwinana refinery in Perth and the Altona one in Melbourne both closed in 2021. Australia's benchmark S&P/ASX200 was 0.9 per cent weaker on Monday.
Yahoo
23-06-2025
- Business
- Yahoo
Trump slump smashes major Aussie company
A brutal two-punch combo of Trump tariffs and inflation shocks is crushing the stock prices of major Australian fashion retailers, with luxury brand Cettire leading the dramatic slump. The company started off the year with a market capitalisation of nearly $600m, but a precipitous 81 per cent decline in its share price since January 2 value means it is now worth just $115m. Moomoo market strategist Jessica Amir warned 'serious alarm bells' were ringing about the survival of the company, which sells high-end products worldwide through its online platform. 'It's safe to say there are some serious questions about a potential receivership,' she said. In a trading update from June 12, Cettire announced just $500,000 in earnings for the financial year ending May 31, though sales revenues lifted 1.7 per cent to $693.8m. The company now has $45m left in cash, down from $79m in March. Cettire founder and CEO Dean Mintz blamed trade uncertainty around US tariff policy in part for the difficult trading environment. 'Recent results from luxury industry participants point to continued challenges in the sector, amplified by trade uncertainty surrounding US tariff policy,' he said. 'As a result, elevated promotional activity persists across the market.' While Cettire's share price is tanking, there are avenues the company could pursue to avoid any fall into administration, for example a capital raise or taking on a new debt facility. It is not the only ASX-listed apparel business to record a disturbing slump in value this year. Footwear retailer Accent Group has slumped 45 per cent, while KMD Brands, which sells the Kathmandu and Rip Curl brands, has tumbled 33 per cent. City Chic has retreated 26 per cent. At the start of the year, KMD was worth about $300m. Now it is worth less than $200m. Some of the retailers point to US President Donald Trump's tariff shock for creating additional challenges in their businesses. In a trading update from June 19, KMD estimated tariffs would strip about $1m in earnings from the company across the 2025 financial year. 'The (company) continues to closely monitor the fluid US tariff situation and it remains too early to estimate the impact on consumer demand in the US,' the company said. 'Given the uncertainty in the US market, agility remains the (company's) main priority heading into 2026.' In an update from May 5, City Chic has warned some 20 per cent of its revenue was generated in the US and 90 per cent of its products were sourced from China, a big target for tariffs. 'Due to the tariff situation and its potential impact on consumer demand, USA sales expectations have been reduced for FY26,' the company said. But global trade chaos is not the only pressure mounting on fashion stocks, Ms Amir cautioned. Rising oil and electricity prices are also eating away at consumer spending power. 'The things we're paying every quarter and every month are far higher than they were,' she said. 'Petrol costs are up markedly and that's because the oil price is up. 'It means you've got less money left over to buy things like a luxury designer handbag from Cettire, or that Rip Curl jumper. 'You might want to get out your needle and thread and sow up your Kathmandu. You're not exactly going to go out and buy another one.' The benchmark ASX200, which tracks the 200 largest companies on the Australian stock market, has advanced 3 per cent year-to-date.
Perth Now
23-06-2025
- Business
- Perth Now
Trump slump smashes major Aussie company
A brutal two-punch combo of Trump tariffs and inflation shocks is crushing the stock prices of major Australian fashion retailers, with luxury brand Cettire leading the dramatic slump. The company started off the year with a market capitalisation of nearly $600m, but a precipitous 81 per cent decline in its share price since January 2 value means it is now worth just $115m. Moomoo market strategist Jessica Amir warned 'serious alarm bells' were ringing about the survival of the company, which sells high-end products worldwide through its online platform. 'It's safe to say there are some serious questions about a potential receivership,' she said. In a trading update from June 12, Cettire announced just $500,000 in earnings for the financial year ending May 31, though sales revenues lifted 1.7 per cent to $693.8m. Luxury retailer Cettire is leading a slump in ASX-listed fashion stocks this year. Supplied Credit: Supplied City Chic has warned US tariff policies could impact its earnings. Supplied Credit: Supplied The company now has $45m left in cash, down from $79m in March. Cettire founder and CEO Dean Mintz blamed trade uncertainty around US tariff policy in part for the difficult trading environment. 'Recent results from luxury industry participants point to continued challenges in the sector, amplified by trade uncertainty surrounding US tariff policy,' he said. 'As a result, elevated promotional activity persists across the market.' While Cettire's share price is tanking, there are avenues the company could pursue to avoid any fall into administration, for example a capital raise or taking on a new debt facility. It is not the only ASX-listed apparel business to record a disturbing slump in value this year. Footwear retailer Accent Group has slumped 45 per cent, while KMD Brands, which sells the Kathmandu and Rip Curl brands, has tumbled 33 per cent. City Chic has retreated 26 per cent. Graphic Aussie Fashion Stocks - Jan 2-June 23 (2) At the start of the year, KMD was worth about $300m. Now it is worth less than $200m. Some of the retailers point to US President Donald Trump's tariff shock for creating additional challenges in their businesses. In a trading update from June 19, KMD estimated tariffs would strip about $1m in earnings from the company across the 2025 financial year. 'The (company) continues to closely monitor the fluid US tariff situation and it remains too early to estimate the impact on consumer demand in the US,' the company said. 'Given the uncertainty in the US market, agility remains the (company's) main priority heading into 2026.' In an update from May 5, City Chic has warned some 20 per cent of its revenue was generated in the US and 90 per cent of its products were sourced from China, a big target for tariffs. KMD Brands, which owns Kathmandu, has warned tariffs could strip out $1m in earnings for FY25. NewsWire / Gaye Gerard Credit: News Corp Australia 'Due to the tariff situation and its potential impact on consumer demand, USA sales expectations have been reduced for FY26,' the company said. But global trade chaos is not the only pressure mounting on fashion stocks, Ms Amir cautioned. Rising oil and electricity prices are also eating away at consumer spending power. 'The things we're paying every quarter and every month are far higher than they were,' she said. 'Petrol costs are up markedly and that's because the oil price is up. 'It means you've got less money left over to buy things like a luxury designer handbag from Cettire, or that Rip Curl jumper. 'You might want to get out your needle and thread and sow up your Kathmandu. You're not exactly going to go out and buy another one.' The benchmark ASX200, which tracks the 200 largest companies on the Australian stock market, has advanced 3 per cent year-to-date.
West Australian
23-06-2025
- Business
- West Australian
ASX-listed fashion retailers record brutal share price declines on Trump tariffs, inflation shocks
A brutal two-punch combo of Trump tariffs and inflation shocks is crushing the stock prices of major Australian fashion retailers, with luxury brand Cettire leading the dramatic slump. The company started off the year with a market capitalisation of nearly $600m, but a precipitous 81 per cent decline in its share price since January 2 value means it is now worth just $115m. Moomoo market strategist Jessica Amir warned 'serious alarm bells' were ringing about the survival of the company, which sells high-end products worldwide through its online platform. 'It's safe to say there are some serious questions about a potential receivership,' she said. In a trading update from June 12, Cettire announced just $500,000 in earnings for the financial year ending May 31, though sales revenues lifted 1.7 per cent to $693.8m. The company now has $45m left in cash, down from $79m in March. Cettire founder and CEO Dean Mintz blamed trade uncertainty around US tariff policy in part for the difficult trading environment. 'Recent results from luxury industry participants point to continued challenges in the sector, amplified by trade uncertainty surrounding US tariff policy,' he said. 'As a result, elevated promotional activity persists across the market.' While Cettire's share price is tanking, there are avenues the company could pursue to avoid any fall into administration, for example a capital raise or taking on a new debt facility. It is not the only ASX-listed apparel business to record a disturbing slump in value this year. Footwear retailer Accent Group has slumped 45 per cent, while KMD Brands, which sells the Kathmandu and Rip Curl brands, has tumbled 33 per cent. City Chic has retreated 26 per cent. Graphic Aussie Fashion Stocks - Jan 2-June 23 (2) At the start of the year, KMD was worth about $300m. Now it is worth less than $200m. Some of the retailers point to US President Donald Trump's tariff shock for creating additional challenges in their businesses. In a trading update from June 19, KMD estimated tariffs would strip about $1m in earnings from the company across the 2025 financial year. 'The (company) continues to closely monitor the fluid US tariff situation and it remains too early to estimate the impact on consumer demand in the US,' the company said. 'Given the uncertainty in the US market, agility remains the (company's) main priority heading into 2026.' In an update from May 5, City Chic has warned some 20 per cent of its revenue was generated in the US and 90 per cent of its products were sourced from China, a big target for tariffs. 'Due to the tariff situation and its potential impact on consumer demand, USA sales expectations have been reduced for FY26,' the company said. But global trade chaos is not the only pressure mounting on fashion stocks, Ms Amir cautioned. Rising oil and electricity prices are also eating away at consumer spending power. 'The things we're paying every quarter and every month are far higher than they were,' she said. 'Petrol costs are up markedly and that's because the oil price is up. 'It means you've got less money left over to buy things like a luxury designer handbag from Cettire, or that Rip Curl jumper. 'You might want to get out your needle and thread and sow up your Kathmandu. You're not exactly going to go out and buy another one.' The benchmark ASX200, which tracks the 200 largest companies on the Australian stock market, has advanced 3 per cent year-to-date.
