Australia Market extends losses on Friday

Headline indices of the Australia market slipped in red on Friday, 26 October 2018, after erasing early gain in afternoon trades amid lingering worries about global growth and Sino-US trade tensions. Local market rose in early trades as investors chased for beaten down shares after heavy losses previous session, thanks to positive lead from Wall Street overnight, with all three major US indices improving between 1.6-3%, and higher commodity prices. However, market gains were capped amid lingering worries about global growth and Sino-US trade tensions. In late afternoon trades, the benchmark S&P/ASX200 index tanked 130.72 points, or 2.24%, at 5,698.30 points, while the broader All Ordinaries index shed 133.32 points, or 2.25%, to 5,793.20 points.

Shares of healthcare companies were higher, led by ResMed, up 5% on a strong first quarter update. Revenue for the breathing apparatus maker increased 12% while net income lifted 23% over the three months to September.

Primary Health (PRY) shares declined 3% after it announced it underpaid some staff in its medical centres division from as early as July 2011. PRY will look to repay staff and is accounting the cost at A$18 million.

Shares of Australian banks and financials were mixed. ANZ Banking, Commonwealth Bank, Westpac and National Australia Bank were up in a range of 0.1% to 0.5%. Investors are expected to be cautious as Australian bank earnings kick off next week with Australia and New Zealand Banking Group and National Australia Bank scheduled to report full-year results.

Shares of Wealth manager AMP fell further 5% after its near 25% slump yesterday to record lows. AMP shares have posted their biggest one-day fall on Thursday ever as a powerful sharemarket rout and fallout from the Hayne royal commission collided with the decision to break with 100 years of history and sell its life insurance business.

Shares of materials and resources companies were up, spurred by a bounce-back in copper prices after the base metal retreated from two-week lows on a sharp drop in inventories. Miners BHP Billiton (BHP) and Rio Tinto (RIO) were both advancing ~1% while Fortescue (FMG) was reversing its 5.7% loss yesterday, up 5%.

CURRENCY: Australian Dollar was modest higher against greenback and other major currencies on Friday. The Australian dollar was quoted at $0.7080, up from $0.7074 on Thursday.

OFFSHORE MARKET: US stock market closed higher on Thursday, thanks to Strong results from major companies including Microsoft and Visa. Some encouraging economic news helped stabilize markets. The Commerce Department said orders to U.S. factories for major manufactured goods grew in September, and the increase was larger than analysts expected. The Dow Jones Industrial Average jumped 401.13 points or 1.6% to 24,984.55. The tech-rich Nasdaq Composite Index plummeted soared 209.93 points or 3% to 7,318.34 and the broad-based S&P 500 surged up 49.47 points or 1.9% to 2,705.57.

European markets also ended higher on Thursday. The French CAC 40 Index surged by 1.6%, the German DAX Index jumped by 1%, and the U.K.'s FTSE 100 Index climbed by 0.6%.

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