The Bull

Monday 18

February, 2019 5:10 AM



Aust market tumbles as trade truce fades

Aust market tumbles as trade truce fades

The ASX was lower as a surge of optimism from the US-China trade truce dissipated, while the RBA kept the cash rate on hold.

Share |

By AAP 04.12.2018 04:59 PM

The Australian share market suffered near-across the board losses as the positive sentiment from the trade truce brokered at the G20 summit dissipates.

The benchmark S&P/ASX200 index was down 58.1 points, or 1.01 per cent, at 5713.1 on Tuesday, while the broader All Ordinaries fell one per cent.

The sell-off suggests the temporary resolution between the US and China, which resulted in an uptick in markets across the world, may have been a "band-aid solution", Pepperstone head of research Chris Weston said.

"Perhaps the damage has already been done for the global economy from the trade tariffs," he told AAP.

The energy sector was 1.4 per cent lower despite a rise in oil prices, which Mr Weston said is a reflection of investors questioning the global growth outlook.

Santos fell 2.5 per cent to $5.85 as investors cashed in on Monday's gains, while Woodside, Caltex and Oil Search were between 1.3 and 2.1 per cent lower.

The financial sector fell consistently throughout the day to close 1.2 per cent lower.

Westpac suffered the heaviest losses of the big four lenders, down 1.4 per cent to $25.89, and NAB the least, down 0.9 per cent to $24.38.

Macquarie Group fell 1.1 per cent to $116.35.

The resources sector was flat through morning trade but closed more than one per cent weaker, with South32 and BlueScope down 3.3 and 3.8 per cent respectively, while major miner Rio Tinto lost two per cent to $73.51.

BHP reversed earlier gains and was 0.6 per cent weaker at $31.62.

Consumer staples were dragged down by Coles - down 1.1 per cent to $11.49 - which has recorded six consecutive sessions in the red.

Metcash shares also weighed on the sector, tumbling more than seven per cent to $2.44 a day after the company said it saw tough times ahead for the supermarket sector.

The telecommunications sector was the only to gain on the indices, with Telstra a rare bright spot, climbing one per cent to $3.01.

Seven West Media - down 1.4 per cent to 68.5 cents - has hired Daily Telegraph deputy editor Anthony De Ceglie to head up its West Australian newspaper division.

Meanwhile, the Reserve Bank kept the official cash rate at a record low 1.5 per cent and reiterated its economic growth forecasts but is keeping a close eye on the stumbling east coast housing markets.

The Australian dollar edged higher as speculation about a slower pace of rate hikes from the Federal Reserve dragged on its US counterpart.

The Aussie was buying 73.70 US cents at 1630 AEDT, up from 73.65 US cents on Monday.

ON THE ASX:

* The benchmark S&P/ASX200 index closed down 58.1 points, or 1.01 per cent, at 5713.1

* The All Ordinaries was down 58.8 points, or one per cent, at 5797.5

* At 1630 AEDT, the SPI200 futures index was down 73 points, or 1.26 per cent, at 5698

CURRENCY SNAPSHOT AT 1630 AEDT:

One Australian dollar buys:

* 73.70 US cents, from 73.65 US cents cents on Monday

* 83.34 Japanese yen, from 83.63

* 64.79 euro cents, from 64.91

* 57.83 British pence, from 57.68

* 105.98 NZ cents, from 106.60

GOLD:

The spot price of gold in Sydney at 1630 AEDT was $US1236.54 per fine ounce, from $US1225.33 on Monday.

Archive
  • Trump to get update on China trade talks

    US duties on $US200 billion worth of Chinese imports are set to rise to 25 per cent from 10 per cent if no deal is reached by March 1 to address US demands

  • SA govt unveils Repat Hospital plan

    The South Australian government has unveiled its master plan to redevelop Adelaide's Repatriation Hospital.

  • US-China talks to boost Aussie market

    Australia's share market is tipped to open higher on Monday after optimism surrounding US and China trade talks.

  • The Week Ahead

    In Australia, the December quarter Wage Price Index release dominates the local agenda in the coming week.

  • ASX closes flat as more companies report

    The Australian sharemarket has managed to finish in positive territory as more companies reported earnings results.

  • Stocks to watch

    Stocks of interest at the close of trade on the ASX on Thursday, February 14.

  • Germany to let NATO use its cyber skills

    Germany is to join the ranks of NATO countries making its cyber warfare skills available to the alliance to help fight hacking and electronic warfare, officials said on Thursday.

  • Domain posts $156.4m loss as listings fall

    Domain's first-half loss has widened to $156.4 million after Sydney and Melbourne's stumbling property markets forced it to take a large non-cash impairment.

  • Farmer denies scaring vegans with gunshot

    A WA farmer who asked vegans to stop filming calves on his property and leave, then fired a shot into farmland, says he wasn't trying to scare them.

  • CommSec Daily Report Friday

    The local sharemarket is mostly flat so far in a choppy session of trade. The ASX 200 is marginally higher by 6 points or 0.1% to 6066 points towards lunch after trading in a narrow 18 point band...

Markets
Index: Points Change Percent

PLEASE SUPPORT OUR SPONSORS, AUSTRALIA'S LEADING BROKERS:



© Copyright TheBull.com.au. All rights reserved.