Australia Market plummets on trade concerns

Headline indices of the Australia share market tumbled for fourth straight session on Monday, 05 August 2019, as investor sentiment was at low ebb on heightened concerns over the future course of the globe economy amid escalating U.S.-China trade issues. The grim mood followed declines on Wall Street on Friday and data that showed Australia's service sector fell deeply into contraction in July. Most of ASX sectors declined, with healthcare, financials, energy, materials, and industrials issues being notable losers. At closing bell, the benchmark S&P/ASX200 index dropped 128.27 points, or 1.9%, to 6,640.30. Meanwhile the broader All Ordinaries index, which tracks the nation's 500 biggest listed companies, declined 135.45 points, or 1.98%, to 6,710.61.

Shares of energy players declined even as crude oil prices rebounded overnight. Santos is lower by 1% and Woodside Petroleum was down 0.2%, while Oil Search is advancing almost 1%.

Financials fell sharply as the major banks declined. ANZ Bank (ANZ) saw the steepest losses among the big four, down 1.7%, while Commonwealth Bank (CBA) fell 0.8%

In company news, Flight Centre (FLT) eased 0.85% after announcing it will acquire the remaining 25% stake of Canadian corporate travel firm, Les Voyages Laurier du Vallon (LDV) as FLT already owns 75% of the business.

ECONOMIC NEWS: Australia AiG Services PMI Dips Into Contraction In July -- Australia service sector fell deeply into contraction in July with a Performance of Service Index score of 43.9, the latest survey from the Australian Industry Group revealed on Monday. That's down sharply from 52.2 in June and it slides well below the boom-or-bust line of 50 that separates expansion from contraction. Individually, sales, employment, new orders, supplier deliveries, finished stocks and selling prices all were firmly in contraction territory, while capacity utilization, input prices and average wages expanded.

CURRENCY NEWS: The Australian dollar, a liquid proxy for emerging market and China risk, slipped to a fresh seven-month trough against greenback on Monday. The local currency was quoted at $0.6748 after losing 1.6% last week.

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