The Australian share market finished in the red, mirroring a decline on Wall Street triggered by the rapid rise of a Chinese AI startup called DeepSeek. DeepSeek, an AI chatbot, has emerged as a dominant force, surpassing Nvidia as the world's most valuable company. While the Australian market showed resilience overall, sectors like uranium mining and data centers suffered due to concerns about the impact of DeepSeek on energy consumption.
The local share market failed to hang on to mid-session gains, closing in the red. It followed a technology rout on Wall Street , fuelled by the rapid rise of Chinese AI start up DeepSeek.
Along the way, AI adjunct Australian businesses, particularly in the data centre space - Goodman Group, NEXTDC and the recently floated DiCo REIT , were steam-rolled as well. The biggest drags were uranium miners as investors realised that the AI revolution may not be as energy hungry as first thought and the likes of data centre developers Goodman Group and NEXTDC fell.Heading the ASX 200 leaderboard is Sigma Pharmaceuticals on first half results ahead its merger vote, while A-REIT Dexus was up 3.9% on a broker upgrade, despite an overall weakness in the property sector.
CBA forecasts headline annual inflation will dip to 2.4%, while "the more policy relevant" trimmed mean CPI is likely to have risen by 0.5% over the quarter — which would bring it down to 3.2% over the year, an improvement, but still outside the RBA's target band. VIB shares have been progressively sold down across September and October last year, while CBA also sold its Indonesian banking subsidiary in 2024.
"With acquisitions also appearing unlikely, this suggests more fuel for organic growth, with CBA leading the majors on home loan growth, and also pushing hard in SME."There's a fair bit packed into that pithy rhetorical question from Rabobank strategist Benjamin Picton about Chinese AI chatbot DeepSeek's dramatic, market upending appearance overnight.
Similarly, Australia's Goodman Group — a global phenomenon when it comes to building and leasing out data centres — was hammered, down around 8%. Mr Picton argues DeepSeek may well be an elaborate façade, rather than the initiator of Sputnik-like race for global domination of a new technology."But the potential involvement of even outdated American chips in developing the system suggests that more tightening of export controls and knowledge transfer will be in the offing.
"We welcome the government's focus on strengthening member outcomes and stand ready to lead the sector's response to the consultation in collaboration with other stakeholders on the development of these essential service standards," she notes. The lobby group representing the insurers who provide the life insurance cover, CALI, says it remains committed to delivering a high level of service to the"For many people, the life insurance they have in their superannuation is the only type of cover they have or will ever have," says theSuper Consumers Australia would like to see mandatory timelines for claims and more information for fund members.
"I've been reading about China and some of the companies in China, one in particular coming up with a faster method of AI and much less expensive method, and that's good because you don't have to spend as much money. I view that as a positive, as an asset," Trump said. have put out a joint press release, putting the multi-trillion-dollar superannuation sector on notice that new minimum standards are on the way.The new standards will initially target critical areas where complaints data shows the greatest need for improvement, such as:• Fair and efficient processing of insurance claims; andBetter service is especially important during sensitive and vulnerable moments in members' lives.
To get your head around some of the problems this is trying to address, go back and read some of my colleague Nassim Khadem's coverage from late last year.At 1:00pm AEDT, the ASX 200 was up 0.1% to 8,404 points.Despite the tech sell off overnight, the Australian tech sector was marginally higher perhaps on the view that it may benefit from cheaper AI platforms.
"How low could we go? I think we can get into the high 50s area — whether it's 58, 59 US cents," he forecasts.Deutsche Bank's currency analyst Lachlan Dynan is slightly more optimistic, with a central forecast of about 60 US cents.
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