Australia Market ends softer ahead of RBA governor Philip Lowe speech

The Australian share market closed marginally lower on Tuesday, 24 September 2019, as risk sentiments were subdued on caution ahead of a speech by the central bank governor and amid renewed fears over the state of the global economy after weak economic data in Europe. At closing bell, the benchmark S&P/ASX200 index eased 0.85 point, or 0.01%, to 6,748.87, while the broader All Ordinaries sank 4.46 points, or 0.07%, to 6,856.59.

Market participants are awaiting for the Reserve Bank of Australia Governor Philip Lowe's speech, due later on Tuesday, to see the impact it could have around the conversation on interest rate cuts next Tuesday when the RBA meets. Financial futures are now pricing in an 80% chance of a rate cut by the RBA on Oct. 1, after data last week showed the domestic unemployment rate had increased to a one-year high in August.

 

Shares of oil companies declined after crude oil prices dented amid worried about the gloomy outlook for demand following weak manufacturing data from Europe and Japan. Index heavyweight Woodside Petroleum fell 0.7%, while Oil Search shed 0.4%.

Financials posted gains, with Australia and New Zealand Banking Group was the best performer among the "Big Four" lenders, ending 1.3% higher

Gold stocks gained, driven by rising gold prices, which hit a high of over two weeks after the dismal euro zone data stoked global recession fears. Gold producer Perseus Mining rose more than 3%, while Millennium Minerals climbed 7%.

CURRENCY NEWS: The Australian dollar strengthened against greenback on Tuesday. The Australian dollar, sensitive to shifts in broader risk appetite, changed hands at 67.73 US cents following its decline from levels above 68.50 US cents seen last week, ahead of a key speech by RBA governor Philip Lowe tonight where market participants will be looking for any hint of an interest rate cut at the October meeting next Tuesday.

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