Australian stocks fell for the third day in a row as investors retreated from continuing falls in commodities and a weaker Wall Street. The ASX 200 closed the week down about 1.8%.
Here’s the scoreboard:
- S&P ASX 200: 5,566.10 -24.19 -0.43%
- All Ordinaries: 5,556.80 -24.55 -0.44%
- AUD/USD: 0.7295 -0.0060 -0.82%
On Wall St, the S&P 500 closed down 0.6% after a series of poor earnings results. On the local market, eight out of ten sectors were down, adding to Wednesday’s 1.6% loss and the 0.43% drop on Thursday.
The banks were marginally weaker with the NAB down 0.56% to $33.91 and Westpac was flat, down just 0.06% to $34.24.
BHP was down 0.9% to $25.27 but Fortescue Metals was up 0.91% to $1.66. Gold stocks were hammered as prices for the precious metal fell. Northern Star was down 7.76% to $2.02, Newcrest 4.81% to $11.27, Ocean Gold 7.18% to $2.58 and Evolution 6.48% to $1.01.
The fresh food group Costa opened its first day on the ASX at $2.23, two cents down on its IPO price.
The top stories Friday:
1. Gold prices got crushed and so did gold stocks.
2. The Australian dollar took a thumping. Weaker gold and copper combined with a weak Chinese flash PMI to knock it lower.
3. Oroton, which has been bleeding cash setting up Brooks Brothers and Gap in Australia, is selling its stake in the US menswear store. Oroton shares closed up 4.85% to $1.94.
4. CBA follows ANZ. Australia’s largest home lender, the Commonwealth Bank, is moderating investor home loan growth by lifting loans by 0.27% to 5.72%.
5. New Zealand logs its first trade deficit in six months. Exports grew to $4.23 billion, above expectations for a decrease to $4.09 billion but below the $4.36 billion figure of May.
Australia’s corporate watchdog is likely to get a big funding boost, but not from the government.
6. There’s a $170 billion hole in Australia’s budget if the RBA is right about growth.