Stockmarket books softest close since July

Banks led the market to a fourth session in the red, after Wall Street’s longest losing streak since the GFC.

The local market’s depressed start to November follows its weakest October in eight years. Picture: AAP.

The Australian sharemarket has rounded off the week with a fourth straight loss, securing its weakest close since July in the process.

The depressed start to November follows the weakest October in eight years and coincides with a rough period on the S&P 500 in the US, where losses are currently uncapped at eight consecutive sessions, the longest losing run since the GFC.

At the close, the benchmark S&P/ASX 200 index slumped 44.8 points, or 0.86 per cent, to 5,180.8, while the broader All Ordinaries index surrendered 43.5 points, or 0.82 per cent, to 5,263.1.

The benchmark index slid 1.9 per cent for the week as concerns around the prospect of a Donald Trump election win in the US and falling oil prices dampened sentiment.

“US election uncertainty really hit markets over the past week as news of the FBI’s intervention saw average opinion poll support for Clinton over Trump decline to 1 to 2 points,” AMP Capital head of investment strategy Shane Oliver said.

Australians can expect a result from the US election early on Wednesday afternoon, with volatile trade tipped to continue in the lead-up.

“The best outcome for shares would be a Clinton victory but with Republicans retaining control of at least the House as this would be seen as ‘more of the same’,” Mr Oliver said.

“This would likely see a decent relief rally in US, global and Australian sharemarkets.”

The falls ahead of the crucial political event come in contrast to the market’s rally into the Brexit vote, with traders apparently learning not to place too much confidence in tight polls.

Through the Friday session finance weighed heaviest on the market as the big four all saw red.

The clear laggard was NAB as it traded ex-dividend and fell a hefty 6 per cent in response.

Elsewhere, ANZ lost 1.5 per cent, Commonwealth Bank gave back 0.9 per cent and Westpac slid 0.5 per cent.

The materials sector was mixed after iron ore prices struck a new six-month high on the back of a series of steady economic readings out of China, which have gone under the radar amid all the US election chatter.

“China’s economic data remains an oasis of stability amongst the increasing volatility created by the US election,” CMC Markets chief market analyst Ric Spooner said.

“Thursday night’s jump in copper (and iron ore) prices reflects the good news on China’s economy and may help lend relative support to mining stocks.”

Fortescue led the way in bounding 0.8 per cent to $5.29, although Rio Tinto dipped 0.6 per cent to $53.31 and BHP stumbled 1.7 per cent to $22.27.

Further weakness in crude prices weighed on the energy sector, although Santos was flat at $3.37.

Origin Energy skidded 1.9 per cent to $5.17 and Woodside eased 0.4 per cent to $27.90.

Among blue chips, Telstra ended steady $4.90, while Qantas gave back 2.3 per cent to $2.92.

Elsewhere, Orica leapt 8.3 per cent as its underlying full year earnings topped expectations, while Genworth Australia plunged 7.6 per cent on a soft third quarter result and Flight Centre slumped 8 per cent on a weak trading update.

Meanwhile, the Australian dollar firmed to US76.8c on the back of steady retail sales data.