Insights

ANZ (ASX:ANZ) share price dips as bank flags cost of Sydney lockdowns

An extended lockdown is expected to weigh on the Australian economy in the September quarter.
The post ANZ (ASX:ANZ) share price dips as bank flags cost of Sydney lockdowns appeared first on The Motley Fool Australia. –

Shares in Australia and New Zealand Banking Group Ltd (ASX: ANZ) are trading lower on Wednesday, down 0.68% to $27.72.

Headlining today’s challenges for the ANZ share price and the broader S&P/ASX 200 Index (ASX: XJO) is likely to be the Sydney lockdown, extended for another four weeks to 28 August.

Lockdowns weigh on the ANZ share price

According to an ABC news report today, the economics teams from the Commonwealth Bank of Australia (ASX: CBA) and ANZ are forecasting major contractions in the Australian economy for the September quarter.

The report said the ANZ predicted a 1.3 per cent slide for the economy over the June quarter.

“CBA is also more pessimistic about the economic impact of the lockdown within the September quarter, predicting a 2.7 per cent slump in activity.”

This comes hard on the heels of upbeat commentary from the RBA July monetary policy meeting, where it said:

… the Australian economy was transitioning from recovery to expansion. GDP had increased by a stronger-than-expected 1.8 per cent in the March quarter to be almost 1 per cent above its pre-pandemic level. The solid momentum in growth had continued into the early part of the June quarter.

Hopeful rebound on the horizon

Both ANZ and CBA are optimistic about an economic rebound in the last three months of the calendar year, according to the ABC report.

“CBA is forecast a 1.9 per cent lift, which would not completely erase the fall in the current quarter, although ANZ’s economists believe Australia’s economy will play catch up with stronger growth (from a lower base) in 2022.”

This is in line with observations from the RBA’s July meeting, where board members said:

… as observed following earlier lockdowns, spending was expected to rebound when containment measures were eased, supported by highly accommodative policy settings, the strengthened balance sheets of many households and firms, and an increase in the pace of vaccinations.

A range bound ANZ share price

The ANZ share price is up an impressive 20% year-to-date. But most of the headway was made between January and early March.

The ANZ share price has since struggled to break above $29.50 but has been bouncing strongly off lows of $27.00.

With the Australian economy now expected to take a turn for worse, ANZ investors might have to brace for more volatility leading into the August reporting season.

The post ANZ (ASX:ANZ) share price dips as bank flags cost of Sydney lockdowns appeared first on The Motley Fool Australia.

Should you invest $1,000 in ANZ right now?

Before you consider ANZ, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ANZ wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

What to expect from the ASX 200 during earnings season

Own ANZ (ASX:ANZ) shares? Here’s what to look for during reporting season
ASX 200 Weekly Wrap: Just like that… ASX back to record highs

Can the ANZ (ASX:ANZ) share price keep rising?
Top brokers name 3 ASX shares to buy today

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!