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(RTTNews.com) – The Australian stock market is extending losses on Tuesday from the previous session following the negative cues overnight from Wall Street amid heightened fears of a trade war between the U.S. and other major economies as well as on lower commodity prices.
In late-morning trades, the benchmark S&P/ASX 200 Index is losing 38.60 points or 0.62 percent to 6,171.80, after touching a low of 6,161.10 earlier. The broader All Ordinaries Index is down 41.00 points or 0.65 percent to 6,267.70.
Among the major miners, BHP Billiton and Rio Tinto are declining almost 2 percent each, while Fortescue Metals is down more than 1 percent.
BHP Billiton and its joint-venture partner Vale have reached a framework agreement with Brazilian prosecutors to negotiate settlement of a A$55.35 billion claim relating to the fatal Samarco mine disaster in November 2015. An earlier A$7.14 billion civil claim will be dismissed.
Gold miner Evolution Mining is lower by 0.3 percent, while Newcrest Mining is adding 0.6 percent after gold prices edged lower.
Among oil stocks, Woodside Petroleum, Santos and Oil Search are down in a range of 0.4 percent to 1.4 percent as crude oil prices dipped overnight.
In the banking space, ANZ Banking, Commonwealth Bank, National Australia Bank and Westpac are lower in a range of 0.1 percent to 0.6 percent.
Collins Foods, Australia’s biggest KFC franchisee, reported a 16 percent increase in full-year profit on a nearly 22 percent jump in revenue. However, the company’s shares are falling almost 3 percent.
In the currency market, the Australian dollar is slightly lower against the U.S. dollar on Tuesday. The local unit was trading at US$0.7413, down from US$0.7418 on Monday.
On Wall Street, stocks closed sharply lower on Monday amid continued concerns about a global trade war after a report from the Wall Street Journal said President Donald Trump plans to ban many Chinese companies from investing in U.S. technology firms and block additional technology exports to Beijing. Trump also continued his harsh rhetoric on trade in a post on Twitter on Sunday, urging countries to remove “artificial” trade barriers and tariffs on U.S. goods.
The Dow tumbled 328.09 points or 1.3 percent to 24,252.80, the Nasdaq plunged 160.81 points or 2.1 percent to 7,532.01 and the S&P 500 slumped 37.81 points or 1.4 percent to 2,717.07.
The major European markets also showed notable moves to the downside on Monday. While the French CAC 40 Index slumped by 1.9 percent, the U.K.’s FTSE 100 Index and the German DAX Index plunged by 2.2 percent and 2.5 percent, respectively.
Crude oil futures were lower Monday amid continued trade tensions and expectations for rising oil supplies. WTI oil for August fell $0.36 to $68.22 a barrel on the New York Mercantile Exchange.
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