Aussie shares are down by 0.9 per cent at lunch on Friday as investors remain cautious and concerned ahead of this weekend’s G20 Summit in Argentina. While 80 per cent of companies are losing ground, losses nearing 0.8 per cent from the banks are weighing most heavily. The Australian market however had reasonable gains on Tuesday and Thursday which means equities are only a touch lower over the week.
The G20 Summit kicks off tonight and has been built up as a potential platform for a US-China trade deal. While outcomes from the meetings will be key they also remain completely unknown. Bloomberg reported this morning that President Trump said he is very close to “doing something” with China, however markets remain unsure what that means and whether or not it will ultimately be in the form of a trade accord, an outline of an agreement, a step in the right direction or no deal at all. Considering local equities have slumped by around 10 per cent since the start of October, this could be a catalyst for markets next week.
Updates on China’s economy also underwhelmed today. While our largest trading partner’s manufacturing and services sectors are growing, the pace of growth has continued to slow and fell short of economist expectations today.
Coca-Cola Amatil (CCL) is down 11 per cent at lunch after warning that 2019 will be another ‘transitional year’ for the company. Some investors have perhaps perceived this as a sign of potential lower profits. CCL has also decided to sell its SPC operations following a review.
Aristocrat Leisure (ALL) is down 5.5 per cent. The poker machine game maker disappointed with its FY profit results yesterday and its share price targets for the next 12 months have been downgraded by a number of brokers this morning.
Coles (COL) is losing ground. The supermarket chain is down 3.6 per cent from its opening price last Wednesday when it split from Wesfarmers (WES).
Myer (MYR) is lifting as it holds its AGM with investors and packaging company Orora (ORA) is up 2.5 per cent after receiving a number of broker upgrades.
1.3bn shares have changed hands so far today worth $3.4bn. 418 stocks are up, 544 down and 336 are flat
Published by CommSec