Australia Stocks snap seven-day rally as investors opt for profit

The Australian shares declined on Thursday, 10 December 2020, with benchmark indices snapping seven straight sessions of winning streak, as investors opted to secure recent gains after the market's recent rise, with geopolitical tensions with China, concerns over a long-awaited U.S. stimulus package, and eyes on upcoming events in Europe adding to a risk-off mood.

At closing bell, the benchmark S&P/ASX200 dropped 45.35 points, or 0.67%, to 6,683.12. The broader All Ordinaries fell 48.25 points, or 0.69%, to 6,917.14.

The market was ripe for taking profits following a weak lead from Wall Street overnight after disappointment over the halting progress of economic US stimulus talks. Meanwhile, concerns over stalled talks in the United States on its delayed stimulus package to address the economic fallout from the coronavirus pandemic, which has battered the U.S. economy, also saw investors taking profits.

Tensions between Australia and China escalated further after Beijing said it would temporarily impose anti-subsidy fees on some Australian wine imports from Dec. 11.

Investors were also closely eyeing a number of upcoming events in Europe, including UK-EU trade talks, with British Prime Minister Boris Johnson and the European Union's chief executive agreeing to conclude talks on a new trade pact by the end of the week, and the European Central Bank's policy meeting.

Today, losses were widespread with every sector lower. Leading the falls were the healthcare, IT and communications sectors which all fell roughly 1% or more. The financials and utilities outperformed, experiencing narrower declines.

Gold stocks fell the most, following a steep sell-off in bullion prices on Wednesday, as a breakthrough in U.S. fiscal stimulus negotiations remained elusive.

Shares of travel-related firms such as Qantas Airways and Sydney Airport Holdings declined after UK and U.S. health regulators issued allergy warning on Pfizer's COVID-19 vaccine.

Appen (APX) fell sharply with the AI firm sliding 12.4% on a trading update. APX downgraded its FY20 guidance on weaker than expected revenue in Q4 due to COVID-19 lockdowns in California, impacting its major customers. FY underlying EBITDA is now expected between $106-109 million from $125-130 million.

CURRENCY NEWS: The Aussie dollar remains well supported by strong commodity prices, particularly iron ore, and holds at 74.66 US cents.

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