ASX latest: Is the pain over for Aussie share market?
A horror week has wiped $85 billion from the value of our biggest companies, as the US-China trade war hit markets worldwide. But there are some positive signs.
Business
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The Australian share market has snapped a two-day losing streak in early trade this morning as investors take comfort from signs US-China trade tensions are easing.
The nation’s key stock market index, the ASX 200, eked out a slight 0.1 per cent in early trade this morning.
The climb into positive territory follows a two-day rout which has wiped $85 billion from the value of shares amid a fresh round of tit-for-tat trade actions between the US and China.
It also comes despite blue chip heavyweight Commonwealth Bank falling 2.7 per cent to 77.67 in early trade after unveiling a bigger than expected drop in full-year profit.
Investors across the globe have hit the sell button this week after US President Donald Trump moved to slap a 10 per cent tariff on the last $US300 billion ($443 billion) a year worth of Chinese goods that have not previously been targeted.
A sharp fall in the price of China’s currency further inflamed fears as investors worried the Asian economic powerhouse would use the yuan as leverage in its dispute with the US.
A weaker Chinese currency against the US dollar makes its exports to America cheaper, offsetting the impact of tariffs.
China yesterday took measures to support the yuan in moves which saw Wall Street rise by 1 per cent overnight.
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Among local stocks this morning, the finance sector was broadly down with ANZ off 0.5 per cent to $26.59, National Australia Bank down 0.7 per cent to $27.31 and Westpac losing 0.3 per cent to $27.66.
Mining giant BHP was down 0.8 per cent to $36.82 while Rio Tinto was down 0.3 per cent to $91.09.
But the tech sector, which has been hardest hit, was bouncing back.
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