Australian shares saw yet another weak session amid sustained selling in material and resource plays though modest buying was seen in financials after the recent drubbing. This ensured that the markets cut their losses in late trades. The S&P/ASX 200 index slipped 0.20% to close at just under 6200 mark after witnessing similar losses yesterday. The All Ordinaries index shed 0.30% to end at 6292. Asian equities edged up modestly after recent losses as commodities managed to hold sway and some bargain buying emerged after recent losses. Tepid economic data is likely to weigh on the sentiments in near term.
Australia's consumer confidence weakened for the second straight time during the week ended June 24, a weekly survey compiled by the ANZ bank and Roy Morgan Research showed Tuesday. The consumer confidence index fell to 121.4 from 122.1 in the preceding week. However, the four week moving average edged up to 120.8, the highest in four months. Consumers' views towards current financial conditions improved by 2.8% compared to last week.
Material stocks hurt the momentum for Australian markets. Top global miner BHP fell after completed a deal with Brazilian authorities settling a lawsuit over a 2015 dam debacle. Samarco and parent companies Vale SA and BHP have signed a deal with Brazilian authorities that settle a 20 billion real lawsuit related to a 2015 dam explosion that killed 19 people.
BHP further noted that the agreement sets a two-year timeline to reach a settlement over a separate 155 billion real lawsuit, which will remain suspended while the parties continue to negotiate. These announcements took a toll on the mining giant and the stock fell 1% on the day though the counter witnessed an intraday recovery amid positive copper prices.
In other major miners, Rio Tinto fell 1.82% while the broad materials segment ended down around 1%. A slide in global crude oil prices yesterday also hurt energy stocks were also in the red, with Woodside Petroleum Ltd falling around 1%.
However, financials edged up after heavy losses yesterday. The Commonwealth Bank of Australia added 0.9% while ANZ rose 0.35% and NAB gained 0.43%. Westpac lost 0.34% though.
Commodity prices edged up today amid steady buying in Asian equities. COMEX Copper is up 0.32% at $3.01 per pound while WTI Crude oil has added 0.54% to quote at $68.45 per barrel. In overnight trades, the US markets tumbled with major indices seeing their biggest one-day drop in weeks as fresh threats from President Donald Trump against US trading partners underlined how the risk of protectionist policies has not left the market.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
