European share markets were down on Monday, with nearly all sectors entering negative territory, as fears of a potential global recession were fuelled by delays in China's anticipated stimulus rollout.
The downer market led to a decline of 1.8% in shares of LVMH, Europe's most valuable firm, due to its strong exposure to the Chinese market.
Mining shares also suffered, sliding 2.2% – China’s economic status once again applied downward pressure as the world’s top metals consumer, representing huge percentages of global demand for iron ore, steel, lead, zinc, copper, aluminium and nickel, among many other commodities.
Chemicals stocks took a significant hit, dropping 2.8%, while banking stocks managed to stay just above the line.
Construction and material stocks declined 2.5% following warnings of an impending mortgage crunch in the UK and a dip in house asking prices.
Recent figures revealed that the average rate of a two-year fixed-rate deal had surpassed 6% for the first time since December.
The FTSEurofirst 300 index, encompassing the entire continent, fell by 1% and the UK FTSE 100 index dropped by 0.7%, primarily influenced by falling industrial metals stocks, which saw a decrease of 1.8%.
British 2-year government bond yields reached 5% for the first time since July 2008 ahead of the Bank of England policy meeting scheduled for Thursday.
In the United States, share markets remained closed on Monday due to the Juneteenth National Independence Day public holiday.
Despite that, US equity futures still experienced modest losses as concerns about the global economy and the trajectory of interest rates took their toll.
Dow Jones index contracts indicated a decline of approximately 0.1%, with the S&P 500 index falling less than 0.1% and the Nasdaq 100 index dipping about 0.1%.
Data reveals 1 in 10 Australians lie on tax returns
If you’ve ever pulled the wool over the tax man’s eyes come end of financial year, you’re not alone.
New research from Finder.com reveals more than 1 in 10 Australians (12%) admit to lying on their tax returns – and that’s just the 2.4 million or so Australians who admit to it.
A survey of 1,080 respondents found 12% of us lie, 4% of that do so regularly, and another 4% do so “occasionally”.
Finder money expert Alison Banney acknowledges that doing your own taxes can be overwhelming.
“Add cost of living to the mix and many will be attempting to find ways to lower the amount they have to pay this year,” Banney said but cautioned against falling to temptation.
“Lodging inaccurate information with the tax office is a criminal offence which can, in extreme cases, call for up to 10 years imprisonment or hefty fines.
“While most people aren’t intentionally dishonest when submitting their return, it’s important to be diligent in double checking you’re not making a costly mistake.
“The risks and consequences far outweigh any short-term gains made.”
Interestingly, it was those both losing the most to taxes and most able to afford it that were most likely to cheat on their tax returns – Australians on an income greater than $100,000 were slightly more likely to lie (14%) than those earning below (12%).
Side hustles (7%) and investments (4%) were the income streams most lied about by Australians.
If you need some guidance on how to declare your assets and earnings, you can check out the BeProactive guides on shares and dividends tax, and deductions you can claim related to your shares.
Currency, oil and minerals
Both European and US trade witnessed weaker currencies against the US dollar.
The Euro dropped from US$1.0937 to US$1.0906, while the Australian dollar slipped from US68.77 cents to US68.39 cents.
Similarly, the Japanese yen weakened from 141.58 yen per US dollar to JPY142.02.
Oil prices declined 0.7% on Monday, as concerns regarding China's economy overshadowed OPEC+ output cuts and the continuous decrease in the number of oil and gas rigs operating in the United States.
The Brent crude price fell by US52 cents or 0.7%, reaching US$76.09 per barrel.
US Nymex crude price shed US49 cents or 0.7%, settling at US$71.29 per barrel during after-hours trade. Trading volumes remained thin due to the public holiday in the US.
Base metal prices faced downward pressure in London trade on Monday.
Copper futures experienced a 0.1% decline due to a lack of clarity regarding economic stimulus measures in China, the top consumer of copper, coupled with a stronger US dollar, reinforcing expectations of weak demand.
The price of aluminium futures also dipped by 1.5%.
In the gold market, futures prices fell by US$8.90 or 0.5% to US$1,962.30 per ounce during after-hours trade on Monday.
Investors will be keeping a watchful eye on US Federal Reserve chair Jerome Powell's upcoming testimony on Capitol Hill later in the week.
Spot gold traded near US$1,950 per ounce in the afternoon North American trade.