Australia Stocks end softer

Headline equities of the Australia stock market were lower on Wednesday, 27 June 2018, as concerns lingered over the impact of potential global trade restrictions. ASX sectors were mixed, with decline in shares of financials, industrials, healthcare, and telecom issues were offset by gains in energy, materials, and consumer discretionary issues. At the closing bell, the benchmark S&P/ASX200 index was down 1.7 points, or 0.03%, at 6,195.9 points, while the broader All Ordinaries was down 1.6 points, or 0.03%, at 6,290.5 points.

Investors focused on the simmering trade tensions are awaiting more clarity from the White House on its plans. President Donald Trump signaled he may take a less confrontational path toward curbing Chinese investments, backing down from earlier reports that the U.S. would bar Chinese money in certain technologies.

Shares of banks and financials were lower, with Commonwealth Bank was downbeat. ANZ Banking, National Australia Bank and Westpac were lower in a range of 0.2% to 0.4%. The losses in lenders come ahead of the final phase of the Federal Reserve's annual stress tests and waning consumer confidence.

Energy stocks rose, underpinned by higher oil prices on reports the U.S. is pressing allies to halt imports of Iranian crude. Crude oil prices surged Tuesday after U.S. officials threatened sanctions on countries that continue to import oil from Iran. In response, WTI crude rose $2.45 or 3.6% to $70.53 a barrel on the New York Mercantile Exchange. Woodside Petroleum, Santos and Origin Energy were higher in a range of 1% to 3%. Woodside Petroleum's chief executive said that the company will decide soon whether to continue to invest in Sempra Energy's Port Arthur liquefied natural gas export project in Texas.

The major miners received a boost from higher iron ore prices. Shares of BHP Billiton, Rio Tinto, and Fortescue were rising in a range of 0.2% to 2%.

Shares of gold miners were mixed after gold prices touched a six-month low overnight. Among gold mining stocks, Evolution Mining traded higher, while Newcrest Mining was traded downbeat.

CURRENCY NEWS: The US dollar rose against a wide range of currencies, with weakness in the Chinese yuan notable given US-China trade tensions. Markets were buffeted by mixed messages from Washington on its international trade stance. U.S. Treasury Secretary Steven Mnuchin said on Monday that coming investment restrictions from the department will not be specific to China but would apply "to all countries that are trying to steal our technology." However, that statement was contradicted by White House trade and manufacturing adviser Peter Navarro, who said that any investment restrictions proposed by the Trump administration would target China and not other countries.

The Australian dollar slipped below the US$0.74 mark on Wednesday. The local unit was trading at US$0.7396, down from US$0.7407 on Tuesday.

OFFSHORE MARKET NEWS: US stock market closed higher on Tuesday, 26 June 2018, with bargain hunting contributing to the initial strength, although traders seemed reluctant to pick up stocks amid lingering trade war concerns. The Dow added 30.31 points or 0.12% to finish at 24,283.11, the Nasdaq gained 29.62 points or 0.22% to 7,561.63 and the S&P rose 5.99 points or 0.22% to 2,723.06.

The European markets ended mixed on on Tuesday, 26 June 2018. The DAX of Germany dropped 0.29% and the CAC of France fell 0.05%, while the FTSE 100 of the U.K. gained 0.61%.

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