Australia Market falls 1.6%

The Australian share market finished session steep lower on Friday, 29 May 2020, on tracking falls on Wall Street overnight on rising tensions between the US and China after China's controversial national security law for Hong Kong approved on Thursday. At closing bell, the benchmark S&P/ASX200 index stumbled 95.41 points, or 1.63%, to 5,755.69. The broader All Ordinaries dropped 85.61 points, or 1.44%, to 5,872.20.

China approved a controversial national security law for Hong Kong on Thursday, triggering concerns that the new law will end the city's autonomy. In response, U.S. President Donald Trump said he plans to hold a news conference about China later today. The move came after Washington revoked the special status conferred on Hong Kong, paving the way for the territory to be stripped of trading and economic privileges.US Secretary of State Mike Pompeo said the status had been withdrawn because China was no longer honouring its handover agreement with Britain to allow Hong Kong a high level of autonomy.

Losses were led by the financials with the majority of sectors weaker. Westpac (WBC) and National Bank (NAB) eased most with declines of 6.3% and 5.2%.

Freedom Foods (FNP) slumped 14.7% after providing a COVID19 trading update. The health food company is expecting a material impact to its FY20 performance due to the pandemic which will include a one off write down of approximately $25 million.

Defensive names were among the outperformers with utilities and consumer staples improving while the tech sector was also slightly higher.

Support for Fortescue (FMG) and gold miners also minimised losses across the materials sector. Northern Star (NST) was a standout as rallied 7.6%.

ECONOMIC NEWS: Australia Private Sector Credit Flat In April- Australia private sector credit in Australia was flat on month in April, the Reserve Bank of Australia said on Friday, following the 1.1% increase in March. On a yearly basis, credit rose 3.6% - unchanged from the March reading.

CURRENCY NEWS: The Australian dollar changed hands at $0.6643, following its rise from levels around $0.66 yesterday.

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