The regulators published a joint letter to the ASIC, after a settlement outage in December due to problems with one of its core technology systems, known as CHESS.
The RBA has now downgraded the ASX’s compliance with the central bank’s financial stability standards, in a sign the RBA has identified serious issues “that warrant immediate action.” ASIC also directed the ASX to engage an expert to carry out a technical review of the CHESS system.
RBA governor Michele Bullock said: “It is deeply disappointing that the regulators need to take these actions today. But they are necessary. ASX operates critical infrastructure that plays a central role in the financial system.”
In the US, another wipeout walloped Wall Street on Friday. Worries are building about a potentially toxic mix of worsening inflation and a US economy slowing because of households afraid to spend due to the global trade war.
The S&P 500 dropped 2 per cent for one of its worst days in the last two years. It thudded to its fifth losing week in the last six after wiping out what had been a big gain to start the week.
The Dow Jones sank 715 points or 1.7 per cent, and the Nasdaq composite fell 2.7 per cent.
On Friday, Lululemon Athletica led Wall Street lower with a drop of 14.2 per cent, even though the seller of athletic apparel reported a stronger profit for the latest quarter than analysts expected. Oxford Industries, the company behind the Tommy Bahama and Lilly Pulitzer brands, likewise reported stronger results for the latest quarter than expected but still saw its stock fall 5.7 per cent.
Wall Street closed its week with another tumble.Credit: Reuters
A report on Friday showed all types of US consumers are getting more pessimistic about their future finances. Two out of three expect unemployment to worsen in the year ahead, according to a survey by the University of Michigan. That’s the highest reading since 2009, and it raises worries about a job market that’s been a linchpin keeping the US economy solid.
A separate report also raised concerns after it showed a widely followed, underlying measure of inflation was a touch worse last month than economists expected. It followed reports on other measures of inflation for February, but this is the one the Federal Reserve pays the most attention to as it decides what to do with interest rates.
Loading
The heaviest weights on the market were Apple, Microsoft and other Big Tech stocks, whose massive sizes give their movements more sway over indexes. They and other stocks that had gotten caught up in the frenzy around artificial intelligence technology have been among the hardest hit in Wall Street’s recent sell-off.
Stock markets worldwide will likely remain shaky as an April 2 deadline approaches for more tariffs. That’s what Trump has called “Liberation Day,” when he will roll out tariffs tailored to each of the United States’ trading partners.
In stock markets abroad, indexes fell sharply in Japan and South Korea as automakers felt more pressure following Trump’s announcement that he plans to impose 25 per cent tariffs on auto imports. Hyundai Motor fell 2.6 per cent in Seoul, while Honda Motor fell 2.6 per cent, and Toyota Motor sank 2.8 per cent in Tokyo.
With AP
