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Australia shares slip as investors stay cautious; NZ rises

Published 11/04/2019, 05:05 pm
Updated 11/04/2019, 05:10 pm
© Reuters.  Australia shares slip as investors stay cautious; NZ rises
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* Bank of Queensland slides on disappointing H1 results

* Miners fall as iron ore prices run out of steam

* New Zealand index snaps six-session losing streak (Updates to close)

April 11 (Reuters) - Australian shares fell on Thursday, dragged down by financials and mining stocks, as many investors remained anxious about the global growth outlook and trade disputes.

The S&P/ASX 200 index .AXJO was down 0.4 percent or 24.8 points to 6,198.7 at the close. The benchmark barely moved on Wednesday.

Investors shrugged off Wall Street's positive overnight performance, having mixed emotions about minutes of the last Federal Reserve meeting.

The Fed's forecast of no rate hikes in 2019 has cheered investors, but that is rooted in expectation of slowing U.S. growth. In the minutes, policymakers said a "deterioration" in the U.S. economy could be amplified by large debt burdens at American companies. McGlew, executive director of corporate stockbroking at Argonaut, said positive leads from the minutes "did not spill over to our markets today as investors here remained cautious, probably focusing on the lack of consensus among the U.S. policymakers".

There is also concern about U.S. President Donald Trump's threat of new tariffs on goods produced in the European Union, and the Sino-U.S. trade dispute remains unresolved. MKTS/GLOB

Mining stocks .AXMM dropped 1.1 percent. Iron ore prices rose slightly but remained far below a record high reached two days ago amid a 7-day surge. IRONORE/

BHP Group BHP.AX fell 0.6 percent, while rival behemoth Rio Tinto (LON:RIO) RIO.AX shed 1.3 percent. Fortescue Metals Group FMG.AX gave up 1.2 percent.

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Gold miners .AXGD ran out of steam after four sessions of gains. St Barbara SBM.AX tumbled 2.4 percent while Saracen Mineral Holdings SAR.AX lost 1 percent.

Financial stocks .AXFJ were off 0.7 percent, falling for the fifth session out of the last six. Commonwealth Bank of Australia CBA.AX fell 0.5 percent and Westpac Banking Corp WBC.AX by 1.3 percent.

Bank of Queensland BOQ.AX fell 4.9 percent, most among financial stocks, after reporting disappointing first-half cash earnings. healthcare stocks .AXHJ also fell, as the Australian dollar hit a six-week peak, with index heavyweight CSL CSL.AX falling 1.2 percent while Cochlear COH.AX shed 1.3 percent. AUD/

Healthcare companies generate a substantial portion of their revenue overseas, particularly in the United States and strength in the Aussie dollar negatively dents their earnings.

New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.6 percent or 58.64 points to finish at 9,766.6, snapping a six-day losing streak.

Restaurant Brands New Zealand RBD.NZ rose 2.6 percent.

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