Australia Markets closed

Energy, Miners drag ASX lower

Petrina Berry
AAP
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The Australian share market looks set to open lower.

The Australian share market looks set to open lower.

The Australian share market has closed lower after sharp falls in oil and base metal prices weighed on energy and mining companies.

The benchmark S&P/ASX200 was down 0.58 per cent, at 5,934.2 points, following on from Tuesday's biggest fall since September.

Iron ore prices firmed slightly overnight while weaker-than-expected industrial output data from China sparked a pullback in base metals prices, including a 5.7 per cent fall in nickel.

Patersons Securities economist Tony Farnham said the soft Chinese data also weighed on global oil prices overnight alongside an International Energy Agency report that reduced its outlook on oil demand.

"The International Energy Agency report was less positive about demand for oil going forward and talked up US production," Mr Farnham said.

"There is also a degree of cynicism about the upcoming OPEC (Organisation of the Petroleum Exporting Countries) meeting and whether it will deliver production cut extensions.

"All of these factors led to a sell down in energy and non-rural commodity prices and the sectors that feed off them went down as well."

Meanwhile, weaker-than-expected domestic wage growth data released on Wednesday has driven the Australian dollar lower.

Australian Bureau of Statistics data showed wages rose 0.5 per cent in the three months to September 30, missing market expectations of a 0.7 per cent rise.

Mr Farnham said the poor wages growth means the Reserve Bank of Australia is unlikely to lift interest rates any time soon and as a result, the local currency fell.

It was trading at 76.27 US cents before the data was released at 1130 AEDT and hit a session low of 75.77 US cents.

At 1630 AEDT, it was trading at 75.87 US cents, down from 76.34 US cents on Tuesday.

As for the major miners on the local share market, BHP Billiton was down 2.2 per cent to $27.35, Rio Tinto fell 2.7 per cent to $71.05 and Fortescue Metals declined 2.9 per cent to $4.63.

Among the oil and gas giants, Santos led the slide with a 2.2 per cent fall to $4.38, Woodside Petroleum dropped 1.4 per cent to $30.77, while Oil Search declined 1.7 per cent, to $7.14.

The big four banks were also lower with losses ranging from ANZ's 0.2 per cent fall to Westpac's 0.8 per cent drop.

In company news, paint supplier DuluxGroup lifted 6.1 per cent to $8.00 on the back of an almost 10 per cent rise in full year profit.

And Aveo gained 1.9 per cent to $2.70 after the retirement village operator reaffirmed its full-year earnings guidance on improving sales rates.

ON THE ASX AT THE CLOSE:

* The benchmark S&P/ASX200 index was down 4.5 points, or 0.58 per cent, at 5,934.2 points.

* The broader All Ordinaries index was down 36.4 points, or 0.6 per cent, at 6,012.3 points.

* The SPI200 futures contract was down 30 points, or 0.5 per cent, at 5,947 points.

* National turnover was 3.61 billion securities traded worth $5.49 billion.

CURRENCY SNAPSHOT AT 1700 AEDT:

One Australian dollar buys:

* 75.83 US cents, from 76.33 on Tuesday

* 85.83 Japanese yen, from 86.73 yen

* 64.33 euro cents, from 65.39 euro cents

* 57.71 British pence, from 58.18 pence

* 110.42 NZ cents, from 111.19 cents

GOLD:

The spot price of gold in Sydney at 1700 AEDT was $US1,280.92 per fine ounce, from $US1,276.68 per fine ounce on Tuesday.

BOND SNAPSHOT AT 1630 AEDT:

* CGS 4.50 per cent April 2020, 1.8407pct, from 1.8983pct on Tuesday

* CGS 4.75pct April 2027, 2.5457pct, from 2.6097pct

Sydney Futures Exchange prices:

* December 2017 10-year bond futures contract at 97.395 (implying a yield of 2.605pct), from 97.325 (2.675pct) on Tuesday

* December 2017 3-year bond futures contract at 98.050 (1.950pct), from 97.99 (2.01pct).

(*Bond market closes taken at 1630 AEDT previous local session; currency closes taken from 1700 AEDT previous local session)