Australia Market recoups 0.2%

Headline indices of the Australian share market were tad higher on Monday, 12 November 2018, after recouping early losses triggered by downbeat lead from European and U.S. trading on Friday on renewed worries about global growth after China reported weak factory-gate inflation data and lower commodity prices. In late afternoon trades, the benchmark S&P/ASX200 index inclined 10.15 points, or 0.17%, at 5,932 points, while the broader All Ordinaries index added 6.58 points, or 0.11%, to 6,017.60 points.

Global stocks are facing pressure again, from China and worries that the most recent earnings season could prove to be a peak. There's also a renewed debate on the direction of bond yields, with investors dialing down inflation expectations. U.S. consumer prices due this week may offer further hints on the trajectory of costs.

 

Shares of financials were mixed, with sector heavyweight Australia and New Zealand Banking Group losing more than 3% as it traded ex-dividend. However, Westpac Banking Corp rose slightly after the bank said it would raise new capital through a notes offering.

Shares of materials companies were mixed, with heavyweight BHP down 0.5%, but Rio Tinto gained about 2% after the miner completed its A$2.87 billion ($2.07 billion) off-market buy-back.

Shares of energy companies inclined, despite crude oil prices falling for a tenth straight session on Friday. Woodside Petroleum, Santos, and Oil Search were up in range of 1% to 3%.

CURRENCY: Australian Dollar was lower against greenback and other major currencies on Monday,. The Aussie was quoted at $0.7223, down from $0.7244 on Friday.

OFFSHORE MARKET NEWS: US stocks closed in negative territory on Friday, reflecting renewed concerns about the outlook for interest rates on the heels of the Federal Reserve's monetary policy announcement on Thursday. Adding to the concerns about interest rates, the Labor Department released a report showing a much bigger than expected increase in producer prices in the month of October. The Dow Jones Industrial Average fell 201.92 points, or 0.77%, to 25,989.3, the S&P 500 lost 25.82 points, or 0.92%, to 2,781.01 and the Nasdaq Composite dropped 123.98 points, or 1.65%, to 7,406.90.

European shares dipped on Friday as mining and oil stocks sold off. The French CAC 40 Index and the U.K.'s FTSE 100 Index both fell by 0.5%, while the German DAX Index bucked the downtrend and closed just above the unchanged line.

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