The Aussie market continues its inconsistent week with the ASX 200 falling 43 points or 0.6% to 6709.5, giving back nearly all of yesterday’s improvements and hitting session lows at lunch.
The index hasn’t managed to string together two consecutive days of gains or losses so far this week with a number of key global events keeping investors on edge highlighted by the US-China trade deadline on December 15 which could result in further US tariffs on Chinese exports and potentially hampering global economic growth.
Local shares are falling despite a slight pick up on Wall Street following the US Federal Reserve’s decision to keep rates on hold and indicating that US interest rates will remain unchanged throughout 2020 as well.
Every sector is trading lower at lunch with tech, consumer staples and communications leading declines. Financials are also weaker. Westpac (WBC) is down 1% as it holds an AGM today. Both the ANZ Bank (ANZ) and National Bank (NAB) will also hold AGM’s next week.
The outperforming sector is materials with a slight pickup in metals prices overnight. Rare earths miner Lynas (LYC) is up 9% on a report that the US Army is looking to fund construction of a processing facility for rare earths with China threatening to stop exporting minerals. LYC is one of the major rare earth operators outside of China.
Property fund manager, Charter Hall (CHC) is lifting 3% after acquiring a 49% stake in a $1.7 billion portfolio of 225 BP service stations and a ~$400 million acquisition of a facility leased to Arnott’s. The acquisitions have led to CHC upgrading FY20 guidance.
Redbubble (RBL) shares are tumbling 39.5% after the online marketplace operator downgraded revenue expectations on sluggish sales on its platforms.
On the economic front, tourist arrivals to Australia fell 0.2% while departures fell 0.4% in October. The Aussie dollar has lifted to the best levels in a month, buying 68.75 US cents on reduced concerns over the global economic outlook.
So far, 0.9b units have traded worth $1.8b with 405 stocks higher, 485 weaker and 325 unchanged.
Published by CommSec