Australia Stocks fall 1.35%

The Australian share market closed down on Wednesday, 20 November 2019, as risk sentiment weighed down by falls on Wall Street overnight and lingering uncertainty over the outlook for key trade talks between two major economies. ASX sectors were mostly lower, with financials being notable lower after regulators accused the Westpac Banking Corp of serious breaches of anti-money laundering rules, while energy stocks took a losses as the price of U.S. crude oil dropped 3.2%. At closing bell, the benchmark S&P/ASX200 index dropped 91.80 points, or 1.35%, to 6,722.42, while the broader All Ordinaries sank 85.83 points, or 1.24%, to 6,828.25.

Doubts about substantive progress on a partial trade deal with China ahead of a Dec. 15 deadline for the increase of import tariffs somewhat undermined sentiment. U.S. President Donald Trump on Tuesday threatened to escalate the trade war by raising tariffs on Chinese imports if no deal is reached with Beijing. A tariff hike on Chinese exports to the U.S. is set to kick in on that date.

 

Financial stocks tumbled, with the Big Four banks recording sizable declines, led by second-biggest lender Westpac Banking Corp after regulators accused the bank of serious breaches of anti-money laundering rules. Australia's financial crime regulator on Wednesday alleged that Westpac Banking Corp had breached laws on over 23 million instances and applied for civil penalties against the lender, sending its shares 2.5% low. National Australia Bank and Commonwealth Bank of Australia shed 1.6% and 1.4%, respectively.

Energy sector stocks also suffered losses as the price of U.S. crude oil dropped 3.2%. Benchmark crude oil fell $1.84 to settle at $55.21 a barrel. Brent crude oil, the international standard, dropped $1.53 to close at $60.91 a barrel. Shares of oil and gas Beach Energy dropped 3.4%. Australia's biggest independent coal miner Whitehaven Coal plummeted after a disclosure revealed a stake selloff by UBS.

CURRENCY NEWS: The Australian dollar, sensitive to shifts in broader risk appetite, rose against greenback. The Australian dollar changed hands at $0.6816 after rising from levels around $0.679 in the previous trading day.

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