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It took more than 11 years, but the benchmark ASX200 has finally regained its levels prior to the global financial crisis that devastated the global economy.
The ASX200 rose 44.3 points, or 0.65%, to the opening bell on Tuesday, reaching 6,870.1, nearly 20 points higher than its previous high of 6,852, set on 1 November 2007.
While the broader All Ordinaries index overcame its peak prior to the global financial crisis last week, the ASX200, which tracks the stock prices of the 200 largest companies listed on the Australian stock exchange, is just right. below its high point. some days.
And while the market was finally able to recover from the dark days of the 2008 crisis, when almost every day seemed to present a new threat of corporate collapse, its new peak was linked to growing concerns that Australia can maintain its record of 28 years without a crisis. an economic recession.
This month, the Reserve Bank lowered interest rates to a record 1% to try to stimulate an economy that, despite high commodity prices, remains anemic.
The bank is worried about low household spending, which contributed to the poor performance of the retail sector and the effect of low wage growth.
While the Australian economy prevented the Australian economy from coming out of recession thanks to government stimulus, a bank guarantee and soaring prices for iron ore and coal, its market was slower to recover. straighten that that of the United States and Asia.
The data provided by S & P Dow Jones, which manages the ASX200 index, shows that it reached its trough in the GFC period on March 6, 2009, which means that it took 10 years and almost five months to recover his losses.
The US equivalent, the S & P500, reached its lowest level since GFC in March 2009 and had fully recovered about two years later.
The S & P Japan 500 recovered its losses in the GFC in 2017 and the S & P Access Hong Kong index did the same in January, said Priscilla Luk, head of research and index design. at S & P Dow Jones.
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