Australia Market trades lower on Monday

Headline indices of the Australia market were down around late morning on Monday, 15 October 2018, investors risk aversion selloff triggered on following global losses in the previous week, shrugging off the positive cues from Wall Street on Friday and a rebound in commodity prices. In the previous week, stocks sold off globally as investors fretted over rising interest rates, valuations, lingering worries about U.S.-China trade tensions, and worries about a possible economic slowdown. Around late afternoon trade, the benchmark S&P/ASX200 index fell 72.37 points, or 1.23%, at 5,823.30 points, while the broader All Ordinaries index shed 72.86 points, or 1.21%, to 5,933.70 points.

Shares of materials companies were lower despite rising copper and iron ore prices, with BHP, Rio Tinto and Fortescue Metals fell in a range of 1% to 3%. Gold miners Evolution Mining was lower by more than 2% and Newcrest Mining was down more than 1% after gold prices declined 0.5% Friday.

 

Shares of banks and financial players were also down, with ANZ Banking, Commonwealth Bank, National Australia Bank and Westpac were lower in a range of 1.4% to 1.9%.

CURRENCY: Australian Dollar was higher against greenback and other major currencies on Monday. The Australian dollar traded at $0.7107 after seeing gains from around 0.705 in the previous week.

OFFSHORE MARKET NEWS, US stock market rebounded on Friday, as bargain hunting and strong Chinese trade data that eased concerns over slowing global growth. The Dow Jones Industrial Average jumped 287.16 points or 1.2% to 25,339.99, the Nasdaq soared 167.83 points or 2.3% to 7,496.89, and the S&P 500 surged up 38.76 points or 1.4% to 2,767.13.

European shares closed lower on Friday. The German DAX Index edged down by 0.1%. The U.K.'s FTSE 100 Index and the French CAC 40 Index both dipped by 0.2%.

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