Australia’s share market is set to record its first negative week in the past three, with miners and banks pulling the main indices down in the current session.

The S&P/ASX200 benchmark index was down 55.4 points, or 0.94 per cent, to 5817.5 points at 1200 AEST on Friday.

The All Ordinaries index was lower 51.8 points, or 0.85 per cent, to 6017.6.

Materials were down 1.65 per cent and financials dipped 0.95 per cent.

The energy sector had the greatest fall, 2.67 per cent. Industrials and health also lost more than one per cent.

Information technology was best, higher by 1.58 per cent.

The market has not followed US ones’ higher but Deep Data Analytics founder Mathan Somasundaram was not surprised.

He attributed the negative mood to lower commodity prices overnight.

He also noted the Aussie dollar had dipped prior to trade and said global investors were following it.

The Aussie dollar was buying 71.68 US cents, lower from 71.93 US cents after the close of trade on Thursday.

In mining, BHP dropped 2.49 per cent to $35.38, Rio Tinto shed 1.0 per cent to $94.44 and Fortescue lost 2.24 per cent to $16.30.

Retail sales for August were down four per cent on the previous month, which was better than economists’ estimate of a 4.2 per cent decline.

Tight coronavirus restrictions in Victoria were largely responsible for the drop.

In the banking sector, ANZ lost 1.43 per cent to $17.14, the Commonwealth declined 0.65 per cent to $63.62, NAB sunk 1.62 per cent to $17.54 and Westpac slipped 1.56 per cent to $16.65.

Australian biotech Mesoblast has plummeted after US health authorities did not approve its therapy to treat a rare disease which affects blood cancer patients.

The US Food and Drug Administration has asked the company for at least one more study showing its therapy, called remestemcel-L, can treat steroid-refractory acute graft versus host disease.

The decision caused shares to fall 34.94 per cent to $3.30.

In US markets, all three major indices closed higher as investors juggled hopeful and pessimistic news on the progress of economic stimulus talks.

A spate of data, including jobless claims and consumer spending, suggested the plodding US economic recovery could be losing steam.

The Dow Jones Industrial Average rose 35.2 points, or 0.13 per cent, to 27,816.9, the S&P 500 gained 17.8 points, or 0.53 per cent, to 3,380.8 and the Nasdaq Composite added 159.00 points, or 1.42 per cent, to 11,326.51.