Australia Market extends losses as Trump faces impeachment inquiry

The Australian share market closed lower on Wednesday, 25 September 2019, as risk sentiments were downbeat on following the negative cues overnight from Wall Street after the U.S. lawmakers called for an impeachment inquiry into President Donald Trump. Sentiment was also weaker following the US President's tough comments regarding China at the United Nations, where he castigated Beijing for pursuing an economic model that he claimed had created an unfair playing field. At closing bell, the benchmark S&P/ASX200 index fell 38.67 points, or 0.57%, to 6,710.20, while the broader All Ordinaries sank 41.89 points, or 0.61%, to 6,814.70.

U.S. shares slipped in volatile trade overnight, after House Speaker Nancy Pelosi announced a formal impeachment inquiry into President Donald Trump. Overnight Democratic House speaker Nancy Pelosi formally initiated impeachment proceedings against Mr Trump after US markets closed, accusing the president of betraying his oath of office and national security. Ms Pelosi said the House will look at allegations Mr Trump pressed his Ukrainian counterpart to investigate local business activities of the son of former vice-president Joe Biden. The president has said he will release the transcript of his call with Volodymyr Zelensky. The S&P 500 fell 0.8% to 2,966.60. The Nasdaq Composite was lower by 1.5% at 7,993.63. The Dow Jones Industrial Average closed 142.22 points at 26,807.77.

Shares of oil and coal product issue declined after crude oil prices fell for a second day on Wednesday on worries about falling fuel demand after Trump's comments doused optimism over China-U.S. trade talks and reignited concerns on global economic growth. Index heavyweight Woodside Petroleum, Oil Search, and Santos were down in a range of 1% to 2%

Financials posted losess, with Australia and New Zealand Banking Group, National Australia Bank, Commonwealth Bank and Westpac - were down in a range of 0.3% to 0.5%.

CURRENCY NEWS: The Australian dollar declined against greenback on Wednesday. The Australian dollar, sensitive to shifts in broader risk appetite, changed hands at $0.6796, compared to $0.6772 on Tuesday.

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