Australia: Shares close lower as US stimulus appears elusive
[BENGALURU] Australian shares fell on Thursday, weighed down by energy and financials stocks, as talks on a new US fiscal coronavirus aid package dragged on, raising fears of a delayed deal.
The S&P/ASX 200 index fell 1.5 per cent in intraday trade before miners helped it recoup some of the losses to settle 0.3 per cent lower at 6,173.80, its lowest close since Oct 12.
Overnight, Wall Street's three major averages closed lower, after US President Donald Trump accused Democrats of being unwilling to craft an acceptable compromise on stimulus.
House Speaker Nancy Pelosi also expressed doubts over the passage of a deal before the presidential election.
"I'm very doubtful that we will get any stimulus agreement being this so close to the election... It has the potential to put either party at a disadvantage if they were to agree with something now," said Brad Smoling, managing director at Smoling Stockbroking.
Australian energy stocks closed 1.9 per cent lower as oil prices extended losses after a build in US inventories pointed to a deteriorating outlook for fuel demand.
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Oil Search closed 3.7 per cent lower after hitting a two-week low earlier in the day, while Santos slipped 1.9 per cent.
Financials fell 0.5 per cent after earlier touching their lowest level in more than a week. The "Big Four" banks - Australia and New Zealand Banking Group, National Australia Bank Commonwealth Bank of Australia and Westpac Banking - slipped between 0.5 per cent and 0.8 per cent.
Gold stocks declined 0.7 per cent as bullion prices retreated. Resolute Mining fell 6.4 per cent and Chalice Gold Mines lost 6.7 per cent.
Miners finished 0.2 per cent higher, with both BHP Group and Rio Tinto adding about 1 per cent.
In New Zealand, the benchmark S&P/NZX 50 index fell 0.2 per cent to 12,407.3. Top losers were Chorus, down 2.1 per cent, and Fisher & Paykel Healthcare, losing 1.7 per cent.
REUTERS
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