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Australia Stocks extend losses

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The Australian share market declined on Wednesday, 13 November 2019, on growing worries U. S.-China trade talks are stalling after President Donald Trump failed to deliver any new information about when the two countries would sign a trade deal. Among ASX sectors, falls were most heavily among resource stocks and financials, meanwhile smaller losses were across consumer facing stocks, but some pockets of improvements were in the IT, health and industrials sectors. Around late afternoon, the benchmark S&P/ASX200 index declined 36.47 points, or 0.54%, to 6,716.50, while the broader All Ordinaries dropped 32.85 points, or 0.5%, to 6,824.20.

Investors were watching for developments on U. S.-China trade, amid uncertainty over what has been agreed between the two economic powerhouses. At the Economic Club of New York, President Donald Trump gave an update Tuesday on trade negotiations with China, saying both sides are close to a "phase-one" deal, but that he would only accept it if the agreement worked to the advantage of U. S. workers and businesses. Trump also rattled some investors by threatening China with even more tariffs if they do not sign a deal.

US-China is looking to hammer out the first phase of an agreement that would ease some tariffs but details of a potential deal remain in flux.

The U. S. is pushing for more open markets and the elimination of intellectual property theft. China, for its part, wants Washington to drop some $250 billion in tariffs imposed since the trade war began.

Energy stocks declined as global oil prices continue to ease. Beach Energy (BPT) was down 5.1% while Oil Search was 1.4% weaker.

Miners were also softer despite a 3.3% rebound in iron ore prices overnight. There are still concerns over Chinese demand heading into the winter months for the northern hemisphere. Rio Tinto (RIO) and Fortescue (FMG) were both down 2%.

Bingo Industries (BIN) shares jumped 10.3% on a positive outlook for FY20 at its AGM. Underlying earnings (EBITDA) is forecast to rise ~50% to a range of $159-$164 million.

Afterpay Touch (APT) was flat after announcing a business update with the buy now pay later firm signing a deal with eBay to commence in 2020.

CURRENCY NEWS: The Australian dollar, sensitive to shifts in broader risk appetite, was down against greenback. The Australian dollar changed hands at $0.6845 after dipping to levels below $0.684 in the previous session.

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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, November 13 2019. 09:45 IST
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