Reported Earlier, Australia Building Approvals (MoM) Preliminary For December -9.5% Vs. 0.5% Est.; 0.3% (Revised) Prior
Portfolio Pulse from Benzinga Newsdesk
Australia's Building Approvals for December showed a significant decline of 9.5%, compared to the estimated 0.5% increase and the previous month's revised figure of 0.3%. This indicates a slowdown in the construction sector.
February 01, 2024 | 5:26 am
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The iShares MSCI Australia ETF (EWA) may face short-term negative impact due to the unexpected decline in Australia's Building Approvals, signaling a potential slowdown in the construction sector which could affect related stocks within the ETF.
As EWA tracks the investment results of an index composed of Australian equities, a significant drop in building approvals could imply a weakening economic indicator for the construction industry, which is a component of the ETF. This may lead to decreased investor confidence in the short term and potential price decline.
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