Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Australia shares pare losses as Q1 GDP beats view; NZ down

Published 07/06/2017, 01:54 pm
Updated 07/06/2017, 02:00 pm
© Reuters.  Australia shares pare losses as Q1 GDP beats view; NZ down
AXJO
-
RIO
-
NCM
-
RIO
-
WES
-
WOW
-
WDS
-
HG
-
WHC
-
AXMM
-
EVN
-

By Susan Mathew

June 7 (Reuters) - Australian shares pared their losses on Wednesday as stronger-than-expected GDP growth data saw the resource-rich economy tie the world record for the longest period without a recession.

Australia's gross domestic product growth came in at 0.3 percent in the first quarter from the previous three months, beating a 0.2 percent predicted by analysts to cap nearly 26 years of continuous expansion - equal to the Netherland's 103-quarter record. S&P/ASX 200 index .AXJO was down 0.2 percent, or 12.874 points to 5,654.6 by 0317 GMT, recouping some of the 0.4 percent losses from earlier in the day.

The headline GDP number and gains in consumption expenditure paint a positive economic growth outlook for the next quarter in Australia, said Ric Spooner, chief market strategist at CMC Markets. elections in the U.K., a potentially dovish stance by European Central Bank at its policy meeting and former FBI director James Comey's Senate testimony, all set for Thursday, could provide catalysts for investors. MKTS/GLOB

In Australia, the material and mining index .AXMM was up 0.3 percent thanks to strength in gold stocks as the yellow metal surged to seven month highs. GOL/

Newcrest Mining NCM.AX was up 0.8 percent, while Evolution Mining EVN.AX rose 1 percent.

Rio Tinto (LON:RIO) RIO.AX was up 1 percent. The miner on Wednesday detailed pricing for a $781 million cash tender as part of its already announced $2.5 billion bond buyback to reduce its debt. rise in copper on the London Metals Exchange also lent support. MET/L

BHP, which has significant oil interests, was 0.6 percent lower as oil and iron ore eased. IRONORE/ O/R

The energy sector, though, was driven higher by a gain of up to 5.8 percent by coal miner Whitehaven Coal WHC.AX energy stocks eked out modest gains as well ahead of inventory data from the U.S. later in the week. ECONASIA Woodside Petroleum WPL.AX , however, was 0.2 percent lower.

The declines on the benchmark, were led by consumer stocks as Wesfarmers WES.AX fell 3.4 percent, its lowest in nearly 7 months, while rival Woolworths WOW.AX was down 0.4 percent. The consumer sector has been pressured due to concerns about falling household spending as a property boom appears to be cooling off.

New Zealand's benchmark S&P/NZX 50 index .NZ50 was 0.7 percent, or 49.94 points, down at 7,445.03.

The decline was broad-based with consumer stocks leading the losses as EBOS Group Ltd EBO.NZ and Fletcher Building Ltd FBU.NZ lost 1.7 percent.

For more individual stocks activity click on STXBZ

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.