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Australia Market falls on trade woes

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Headline indices of the market were down on Wednesday, 12 September 2018, as escalating global trade tensions kept investors on edge. sectors were mostly lower, with shares of materials, financials, property trusts, and telecom issues being notable losers, while and healthcare issues were notable gainers. In late-afternoon trades, the benchmark S&P/ASX200 index fell 8.18 points, or 0.13%, at 6,171.50 points, while the broader All Ordinaries index dropped 7.15 points, or 0.1%, at 6,280.50 points.

Investor confidence was chilled by the latest round of verbal threats in an intensifying US-trade conflict. told the (WTO) on Tuesday it wanted to impose $7 billion a year in sanctions on the in retaliation for Washington's non-compliance with a ruling in a dispute over U. S. dumping duties. Separately, US told reporters on Tuesday that the was taking a tough stance with

Shares of materials and resources were down after a fall in industrial metals prices due to worries about trade tensions. Rio Tinto, and declined in a range of 0.5% to 1.5%.

Shares of banks and financials were down, with Commonwealth Bank, National Bank, Westpac, and fell in a range of 0.2% to 1%.

However, stocks bucked the market and were up for the third straight session as a report of falling crude inventories and the looming bolstered buying interest into the sector. stretched gains on Wednesday trade, as US sanctions squeezed Iranian crude exports and after US production in 2019 was forecast to grow at a slower rate than previously expected.

Brent crude futures were 0.3% higher at $79.31 per barrel after surging more than 2% on Tuesday. . In space, and Woodside were up almost 1% each, while was higher by almost 2%.

Among individual stocks, shares declined 6.3% after department store giant's reported a full-year net loss on asset write-downs and lower sales, while underlying net profit fell 52%.

Shares of gained 1.4% after the has approved a A$13 billion takeover bid by a Hong Kong consortium for Australia's biggest company.

tumbled 13% after damaging revelations about its at the royal commission on Tuesday.

CURRENCY: Australian Dollar fell against greenback and other major currencies on Wednesday, on concerns that any damage to the Chinese from a trade war could hurt Australia's exporters. The Australian dollar was at 70.94 US cents at late afternoon after falling to 70.85 US cents - its lowest level since February 2016 - overnight.

OFFSHORE MARKET NEWS, US stock market closed higher on Tuesday. The Dow Jones Industrial Average rose 113.99 points or 0.4% to 25,971.06, the Nasdaq climbed 48.31 points or 0.6% to 7,972.47 and the advanced 10.76 points or 0.4% to 2,887.89.

The major European stock markets ended mixed on Tuesday. The French Index climbed by 0.3%, the German DAX Index and the U. K.'s Index both edged down by 0.1%.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, September 12 2018. 10:14 IST