Australia’s share market was flat and the Aussie dollar dropped below 71 US cents, following losses in US and European stocks.

The S&P/ASX200 benchmark was lower by 3.5 points, or 0.05 per cent, to 6206.8 at 1200 AEDT on Friday.

The All Ordinaries index was higher by 1.1 points, or 0.01 per cent, to 6415.3.

Higher than expected US jobless claims, and a resurgent coronavirus in Europe did not bode well for global investors.

Consumer discretionaries and financials were the best ASX sectors, higher by 0.51 and 0.42 per cent respectively.

Property and health were the biggest weights, down by 1.05 and 0.68 per cent respectively.

Meanwhile Australian cotton growers could be the latest victims of increasingly bitter trade tensions with China.

Chinese spinning mills have been told to stop buying Australian cotton and the industry could soon face tariffs of up to 40 per cent.

China has targeted Australian beef, barley and wine in recent months and has reportedly enforced a go-slow on importing coking and thermal coal.

Tourism and travel operators will be hoping for a pickup in trade after the first passengers from New Zealand landed in Sydney as part of trans-Tasman travel arrangements.

Kiwis can travel to New South Wales and the Northern Territory, and are not required to stay in quarantine on arrival.

Rio Tinto’s third quarter iron ore production improved to be one per cent below the same period last year as staff returned to pre-COVID work rosters.

The miner produced 86.4 million tonnes of iron ore from the Western Australia’s Pilbara region, and has produced two per cent more after three quarters than the same time last year.

Shares were lower by 0.56 per cent to $95.73. BHP was down 0.73 per cent to $36.50 while Fortescue was up 1.14 per cent to $16.81.

Bendigo Bank and payments provider Tyro were having a great session after a partnership deal.

Tyro will provide its payments technology to the bank’s business customers, while the bank will refer business opportunities to Tyro.

Tyro shares were booming by 7.14 per cent to $4.20, while Bendigo shares were up 3.13 per cent to $6.90.

Among other banks, ANZ gained 0.36 per cent to $19.43, the Commonwealth was higher by 0.15 per cent to $69.39, NAB crept up 0.46 per cent to $19.32 and Westpac edged higher by 0.1 per cent to $18.80.

Earlier, US markets closed lower after data showed an unexpected rise in U.S. weekly jobless claims figures.

A spike in COVID-19 cases in Europe dragged on shares in that continent.

The Aussie dollar was buying 70.82 US cents at 1200 AEDT, lower from 71.33 US cents at the close of trade on Thursday.