Australia Stocks end mixed

The Australian equity market closed mixed after wiping out earlier gains on Wednesday, 12 June 2019, as risk sentiments turned sour amid continued rumble of hostile rhetoric from the U.S. and China over trade. At closing bell, the benchmark S&P/ASX200 index declined 2.59 points, or 0.04%, at 6,543.70 points, while the broader All Ordinaries rose 4.45 points, or 0.07%, at 6,628.90.

Investors' sentiments were downbeat amid concerns over the global economic outlook amid ongoing trade issues. China's foreign ministry on Tuesday said it would respond firmly if the U.S. insisted on escalating trade tensions, after U.S. President Donald Trump on Monday said further tariffs on Chinese imports would take effect if the two countries don't reach a deal at a meeting of Group of 20 leaders later this month.

The US President Donald Trump said on Tuesday that he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agrees to four or five "major points" which he did not specify.

Financial stocks declined on profit booking after five straight sessions of gains. Commonwealth Bank of Australia slipped 0.8% and Australia and New Zealand Banking Group fell 1.1%.

Shares of materials and resources inclined after base metal prices grew on Tuesday on hopes that top consumer China will pump money into building metals-intensive infrastructure. Separately, the US State Department on Tuesday said the United States will team up with Australia and Canada to help countries around the world boost key minerals' output to reduce reliance on China. Major iron ore miners BHP Group and Rio Tinto gained 2.9% and 2.4%, respectively, while Fortescue Metals Group jumped as much as 5.2%.

ECONOMIC NEWS: Australia's consumer confidence weakened in June as deepening concerns about the economy outweighed the initial boost from lower interest rates, survey data from Westpac showed Wednesday. The Westpac-Melbourne Institute Index of Consumer Sentiment fell to 100.7 in June from 101.3 in May. The sub-index tracking the economy over the next twelve months dropped the most, by 4.7%. Meanwhile, the indicator for 'finances, next 12 months' rose 3.1% in June. The unemployment expectations index registered a 5.1% increase, reversing the decline in the previous month. At the same time, the 'time to buy a dwelling' index posted a 1.8% rise to 116.9.

CURRENCY NEWS: The Australian dollar was lower against the U.S. dollar on Wednesday. The Australian dollar changed hands at $0.6947 following its slip from levels above $0.699 earlier in the week.

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