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Australia Stocks fall on trade doubts

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Capital Market
Last Updated : Nov 21 2019 | 8:04 PM IST
The Australian share market retreated further into negative territory on Thursday, 21 November 2019, on rising concerns for the outlook of a near-term trade deal between China and the United States, with a fresh row over U.S. legislation on Hong Kong potentially complicating their negotiations. At closing bell, the benchmark S&P/ASX200 index dropped 49.51 points, or 0.74%, to 6,672.91, while the broader All Ordinaries sank 50.60 points, or 0.74%, to 6,777.66.

Market participants commenced trading in a back foot on concerns a preliminary trade deal between Washington and Beijing may not be completed this year as negotiators continue to wrestle over differences. Beijing is pressing Washington to agree to broader tariff rollbacks on Chinese goods and the Trump administration counters with heightened demands of its own. Doubts about substantive progress on a partial trade deal with China ahead of a Dec. 15 deadline for the increase of import tariffs on about $160 billion in Chinese imports somewhat undermined sentiment.

Adding to the tensions between the world's two biggest economies, the US House of Representatives on Wednesday passed legislation intended to support protesters in Hong Kong and send a warning to China about human rights.

Shares of Westpac Bank dropped 2%, after Australian Prime Minister Scott Morrison called on the lender's board to reflect very deeply over the future of the firm's CEO. That decline followed a more than 3% drop on Wednesday after Australia's anti money-laundering and terrorism financing regulator filed for civil penalty orders against the firm, alleging its oversight of the banking and designated services provided through its corresponding banking relationships was deficient..

CURRENCY NEWS: The Australian dollar, sensitive to shifts in broader risk appetite, eased against greenback. The Australian dollar changed hands at $0.6795 after slipping from highs above $0.681 in the previous session.

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First Published: Nov 21 2019 | 3:46 PM IST

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