The Australian market will be looking for a small positive start to the week’s trading that will be shortened by the Thanksgiving holiday in the US on Thursday and then the half-day session on Friday, so most of the activity will be crowded into the Monday to Wednesday sessions.
Eurozone shares fell 0.1% on Friday, but the US S&P 500 reversed early losses to close up 0.2% helped by President Trump claiming he is optimistic about a trade deal being reached with China and Fed Vice-Chair Richard Clarida echoing Fed Chair Jay Powell’s more dovish comments from earlier in the week regarding the outlook for US interest rates.
Copper, zinc and gold prices rose but the oil price continued fell for the sixth week – the US West Texas Intermedia price lost 6.2% decline and the iron ore price dropped 2.4%.
The $US fell on the back of relatively dovish comments from the Fed and this along with strong Australian jobs data saw the $A push above 73 US cents
Those positive US leads saw ASX 200 futures add 17 points or 0.3% on Saturday morning pointing to a positive start to trade for the Australian share market this morning.
That small gain will be welcome news after last week’s bruising sell-off that saw the ASX 200 shed 3.2% or well over $50 billion in value and take the losses for the year so far to 5.5% for the market’s key index.
The ASX 200 Index lost 191.3 points last week to close lower at 5730.6 while the broader All Ordinaries Index shed 188.2 points, or 3.1%, to 5822.8.
The big losses for oil prices drove much of the negativity with the listed energy sector seeing increased volatility.
Woodside Petroleum fell 2.2% at $33.02, Santos dropped 3.9% to $6.17 and Oil Search slid 2.6% to $7.50 but Beach Energy was able to close the week higher, however, rising 2.7% to $1.72.
The major banks were among the big losers. Westpac fell 8.8% (it went ex its 94 cent dividend early in the week) to $25.27, Commonwealth Bank lost 2.9% to $68.90, NAB closed 4.5% lower at $23.77 and ANZ shed 6.5% to close at $25.36.
The losses were taken in the week before the banks’ CEOs (including Macquarie Group and AMP) and some of their chairs have appointments at the final public sessions of the Hayne Royal Commission starting today.
Elsewhere on the ASX shares in BHP shares lost 3.1% to $32.36, Rio Tinto fell 2.3% to $79.31 and South32 slid 4.5% to $3.38.
Healthcare giant CSL fell 3.6% to $183.67 while Cochlear closed 8.8% lower at $160.63.
Shares in Fairfax Media (down 1.6% to 62.5 cents) and Nine Entertainment (down 2.1% at $1.63) were weaker ahead of the Fairfax meetings today to vote on the Nine takeover offer.
Seven West Media shares continued their recent weakness, dipping 4.6% to 72.5 cents on Friday.
Ages care group, Aveo Group was among the worst performing stocks this week, falling 13.1% to $1.62 after failing to provide guidance, despite a warning of weaker trading conditions.
Healthscope’s decision to give one of its two bidding groups due diligence rights saw its shares end the week up 11.5% at $2.32, but bad publicity at the weekend in Sydney media about problems at its new Sydney hospital will hit confidence.
Local private equity group, BGH was the spurned bidder by Healthscope and by education group, Navitas who rejected an approach early in the week. Navitas shares lost 2.1% to $5.10.
Appen shares rose 11.9% to $12.98 this week after the company upgraded earnings forecasts for the year.
