Australia Market extends losses

The Australian share market finished volatile trade lower on Wednesday, 08 April 2020, as market participants fretted over the impending economic fallout from the coronavirus pandemic after global credit-rating firm Standard & Poor's lowered its outlook on the country's coveted 'AAA' rating to "negative" from "stable". At closing bell, the benchmark S&P/ASX200 index fell 45.34 points, or 0.86%, to 5,206.94. The broader All Ordinaries dropped 42.52 points, or 0.8%, to 5,258.80.

Australian markets took a hit after global credit-rating firm Standard & Poor's lowered its outlook on the country's coveted 'AAA' rating to "negative" from "stable", saying the government's massive fiscal packages to cushion the economic blow from the pandemic could lead to a sharp rise in the country's debt position. Citing the threat of prolonged economic downturn, the government is looking to pass an emergency A$130 billion ($80 billion) stimulus package to subsidise the wages of 6 million Australians.

Losses were across the majority of the market with only the consumer discretionary and property sectors improving. Plenty of attention was focused around financial stocks, which were the major drag on the market.

Banking stocks were under pressure after the Australian Prudential Regulation Authority (APRA), a regulator of Australia's financial stability, had a major bearing on bank performance as it requested for financial institutions, including banks and insurers, to limit the payment of dividends or distributions in the coming months due to Covid-19. Westpac shares fell the most of the big four banks, down 5.4%. Commonwealth Bank dropped 3.3%, while ANZ and NAB both fell about 4.9%.

CURRENCY NEWS: The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 100.264 after touching an earlier low of 99.902. The Australian dollar changed hands at $0.6137 following a rise from levels below $0.609 seen earlier in the week.

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