Australia Market extends losses on weak offshore lead

The Australian share market extended losses from the previous session on Thursday, 16 April 2020, as investors grew concerned about the outlook for the U.S. economy after data showed plunges in retail sales and industrial output in March and disappointing corporate earnings results amid the coronavirus pandemic. However, market losses capped, on better than expected Australia's unemployment data for March. Around late afternoon, the benchmark S&P/ASX200 index shed 66.67 points, or 1.22%, to 5,400. The broader All Ordinaries fell 72.33 points, or 1.31%, to 5,451.

Australia stocks tracked falls on Wall Street after the latest earnings and economic news reminded investors of the devastating economic impact of the coronavirus pandemic. Wednesday's economic lowlight was the Commerce Department report showing U.S. retail sales plummeted 8.7% in March after falling by a revised 0.4% in February, as the engine of the U.S. economy gets locked away amid widespread stay-at-home orders to slow the spread of the virus. A separate report from the New York Federal Reserve showed New York manufacturing activity contracted at the fastest rate on record in the month of April. The New York Fed said its general business conditions index plummeted to a negative 78.2 in April from a negative 21.5 in March, with a negative reading indicating a contraction in regional manufacturing activity.

 

Transurban (TCL) shares declined after it said that average daily traffic fell by 4.8% on its toll roads in the March quarter as more people work from home. Sydney traffic fell by 5.2%, Melbourne declined by 6.7%and Brisbane by 2.2%.

A2 Milk shares climbed to fresh highs today, helped in part by price target upgrade from JP Morgan. Due to earnings revisions, the investment bank increased its target to A$16.11 from A$14.37. It retains an underweight rating.

Virgin Australia (VAH) has requested the voluntary suspension of its shares for up to seven days as it is yet to finalise financing discussions.

ECONOMIC NEWS: Australia Unemployment Rate At 5.2% In March- Australia jobless rate came in at a seasonally adjusted 5.2% in March, the Australian Bureau of Statistics said on Thursday. That was up from 5.1% in February. The Australian economy added 5,900 jobs last month after collecting 26,700 jobs in February - but that was far better than forecasts that suggested a loss of 30,000 jobs due to the impact of the Covid-19 virus. Full-time employment decreased 400 to 8,882,200 persons and part-time employment increased 6,400 to 4,135,400 persons. Unemployment increased 20,300 to 718,600 persons. The participation rate was steady at 66%.

CURRENCY NEWS: The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 99.91 after seeing levels below 99.0 yesterday. The Australian dollar changed hands at $0.6275 after declining from levels above $0.64 yesterday.

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