Australia Market rises 0.7%

The Australian share market finished session higher on Wednesday, 11 December 2019, on the back of gains in shares of financials, utilities, healthcare and telecommunications issues. However, market gains capped as investors reluctant to make bold moves on caution ahead of the outcome of the U.S. Federal Reserve's policy meeting later in the day and U.S. trade deadline on Dec. 15 to impose fresh tariffs on Chinese goods. At closing bell, the benchmark S&P/ASX200 index increased by 45.73 points, or 0.68%, to 6,752.64, while the broader All Ordinaries advanced 41.16 points, or 0.6%, to 6,8153.24.

Traders remained cautious amid uncertainties surrounding an initial trade deal between the United States and China despite report that President Donald Trump might delay a weekend tariff hike on Chinese goods. As per reports, Trump's advisers were making preparations for to postpone punitive duties on smartphones, laptop computers, toys and other goods, but White House economic advisor Larry Kudlow said tariffs were still on the table.

China and the U.S. have until Sunday to come strike a so-called phase one trade deal. If an agreement wasn't reached by then, new U.S. tariffs will take effect. Tariffs on another $156 billion in Chinese goods are set to go into effect on Dec. 15.

The US-China situation has overshadowed other trade issues, including progress on a new deal involving the US, Canada and Mexico. Democrats in the House of Representatives and the White House announced a revised deal with Mexico and Canada. The deal would replace the North American Free Trade Agreement and would offer more provisions for U.S. workers. The deal includes stronger labor enforcement rules and environmental protections than the pact the Trump administration negotiated with Canada and Mexico last year.

Also in focus for investors this week will be central banks, with policy meetings at the Federal Reserve on Wednesday and the European Central Bank that may offer clues on whether more monetary easing is in store in 2020.

Online travel agency Webjet jumped 9.6%, after saying it would consider a takeover proposal. WEB denied it had received any proposals but did mention it would be open to such a transaction if it was in the best interest of shareholders.

ECONOMIC NEWS: Australia Westpac Consumer Sentiment Weakens In December--Australia consumer sentiment weakened in December in consistent with sharp decline in consumer spending in the third quarter, survey data from Westpac showed on Wednesday. The Westpac-Melbourne Institute Index of Consumer Sentiment declined 1.9% to 95.1 in December. All components of the index recorded declines in December. The 'economy, next 5 years' sub-index fell 2.4% in December and the 'economy, next 12 months' sub-index dropped 1.1%.

CURRENCY NEWS: The Australian dollar, sensitive to shifts in broader risk appetite, declined against greenback. The Australian dollar changed hands at 68.17 US cents after a choppy session where December consumer confidence fell 1.9%.

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