The Australian stock market was trading sharply lower Friday, on renewed economic concerns and tracking a second straight session of steep triple-digit losses on Wall Street overnight. Resources stocks fell as commodities prices resumed their decline. At 7:47 p.m. ET, the benchmark S&P/ASX 200 index was losing 175 points or 4.21% to 3,975, extending Thursday's 4.3% loss. The broader All Ordinaries index was falling 168 points or 4.09% to 3,939.
In the currency market, the Australian dollar opened marginally lower on Friday as the U. S. dollar strengthened and commodity prices continued to fall. The Aussie opened at US$0.6704-0.6710, down from Thursday's close of US$0.6728-0.6733.
On Wall Street, U.S. stocks ended Thursday's session in negative territory after investors reacted to some disappointing economic reports and significant reductions in same store sales at many major retailers. The Dow closed down 443 points or 4.85% at 8,696, the Nasdaq lost 73 points or 4.34% to close at 1,609, and the S&P 500 dropped 48 points or 5.03% to finish at 905.
On the economic front, the Australian Industry Group/Housing Industry Association Australian Performance of Construction Index for October is scheduled to be released.
Among banking stocks, Commonwealth Bank of Australia fell 2.19%, ANZ Banking Group lost 4.37%, and National Australia Bank dropped 7.41%. Westpac was down 2.81%, St. George bank slid 3.17%, and investment bank Macquarie Group plunged 8.02%.
In the resources sector, index leader BHP Billiton dropped 7.33%, and Rio Tinto plunged 9.59%. Gold miners were weaker, after gold closed lower on Thursday. Sino Gold plunged 6.11%, Lihir Gold dropped 3.71% and Newcrest Mining added 1.26%.
On Thursday, crude oil futures for December delivery closed sharply lower, on a stronger U. S. dollar and as traders considered inventory data from the Energy Information Administration that showed natural gas inventories were up 12 billion cubic feet in the week ended October 31. This follows Wednesday's report that U.S. commercial crude oil inventories remained unchanged at 311.9 million barrels.
Oil closed down $4.53 at $60.77 a barrel on the New York Mercantile Exchange, after hitting a new 20-month intraday low of $60.16. In the Asian session Friday, crude was down $0.41 at $60.36 in electronic trading at 7:49 p.m. ET.
Among energy stocks, Oil Search lost 5.79%, Woodside dropped 6.26% and Santos fell 4.06%.
In the retail sector, David Jones fell 5.23%, giant retailer Woolworths lost 1.59%, and Coles' owner Wesfarmers dropped 3.35%.
For comments and feedback: editorial@rttnews.com