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Australia Stocks extend losses

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Capital Market
Last Updated : Dec 11 2020 | 5:16 PM IST
The Australian share market finished lower for second straight session on Friday, 11 December 2020, as uncertainties over Brexit, U.S. stimulus and geopolitical tensions with China sapped risk appetite.

At closing bell, the benchmark S&P/ASX200 dropped 40.54 points, or 0.61%, to 6,642.58. The broader All Ordinaries fell 30.78 points, or 0.44%, to 6,886.37.

Australian share market commenced trading with weak note on following a weak lead from Wall Street overnight amid disappointing economic data and slowed stimulus progress.

Denting sentiment further, British Prime Minister Boris Johnson said there was "a strong possibility" Britain and the European Union would fail to strike a trade deal. Near-term U.S. fiscal stimulus appears unlikely after Democrat House Speaker Nancy Pelosi suggested wrangling over a spending package and coronavirus aid could drag on through Christmas.

Tensions between Australia and China escalated further after Beijing said it would temporarily impose anti-subsidy fees on some Australian wine imports from Dec. 11.

Locally, healthcare and financials were among the major weights while the industrials, consumer discretionary and property sectors also faced heavier declines. The broader losses were somewhat tempered by solid improvements for energy, materials and technology. Commodity prices, particularly with iron ore at fresh 8 year highs, helped lift mining names like BHP, Rio Tinto (RIO) and Fortescue Metals (FMG).

Biotech giant CSL Ltd (CSL) had the biggest negative impact on the market with the stock falling 3.2% after announcing that it would not proceed with its joint trial with the University of Queensland past the current stage 1 trials due to the vaccine causing false positive

ZipCo (Z1P) added 2% after announcing that it has signed a partnership with Facebook that will enable small & medium-sized Australian businesses to use Zip Business to pay for advertising on the global social platform.

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Independence Group (IGO) has surged 25% having completed its institutional entitlement offer, raising approximately $446 million as part of its total funding package for its acquisition of a 49% stake in Tianqi Lithium Energy Australia Pty Ltd. IGO shares have been in a halt for the past three sessions.

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First Published: Dec 11 2020 | 5:04 PM IST

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