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Australian shares dip on trade talk uncertainties; NZ edges higher

Published 12/11/2019, 12:14 pm
Updated 12/11/2019, 12:21 pm
© Reuters.  Australian shares dip on trade talk uncertainties; NZ edges higher
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* CBA shares gain after Q1 trading update

* Miners face worst session in nearly a month

* Healthcare stocks ease from record high

By Shreya Mariam Job

Nov 12 (Reuters) - Australian shares fell on Tuesday, tracking losses on Wall Street, as comments by U.S. President Donald Trump over the weekend regarding trade talks with China dampened investor sentiment.

The S&P/ASX 200 index .AXJO fell 0.4%, or 27.7 points, to 6,744.8 by 0057 GMT. The benchmark rose 0.7% on Monday to a more than three-month closing high.

On Saturday, U.S. President Donald Trump said that while trade talks with China had moved slowly and that there had been incorrect reporting about U.S. willingness to lift tariffs, which dampened sentiment in Wall Street overnight. is waiting for further developments on the trade front. Investors are just taking a wait and see approach at the moment," said Christopher Conway, senior investment adviser, Marcustoday financial newsletter.

Trump is set to deliver a speech to the Economic Club of New York later in the day which will be closely watched for any developments on a planned Sino-U.S. "phase one" trade deal.

The financial index .AXFJ shed 0.6%, weighed down by a 3.6% fall in Westpac Banking Corp WBC.AX as the stock trades ex-dividend.

Other "Big Four" banks traded higher following a quarterly update by the country's biggest lender Commonwealth Bank of Australia CBA.AX .

CBA reported a near 10% drop in first-quarter cash profit and said margin pressure from record-low interest rates would persist. However, its shares rose as much as 1.1% to a more than two-week high. investors want to see is improvement in the recent data because everyone knows it is a tough trading environment and that is what CBA has delivered ... Their cash profit grew 5% compared to the average of the last two quarters," Conway said.

With uncertainties surrounding the Sino-U.S. trade talks weighing on commodities, Australian mining stocks fell, with the metals and mining index .AXMM falling as much as 1.1%, set for its worst day in nearly one month.

Fortescue Metals Group Ltd FMG.AX shed 2.8% after cooling demand dragged iron ore prices to a more than two-month low. IRONORE/

Meanwhile, healthcare stocks .AXHJ came off a record high hit in the previous session to slip up to 0.8%, with shares of CSL Ltd CSL.AX dropping as much as 1.2%.

New Zealand's benchmark S&P/NZX 50 index .NZ50 edged marginally higher to 10,925.31.

Shares of utility firm Meridian Energy Ltd MEL.NZ gained 1%, while Spark New Zealand SPK.NZ edged 0.9% higher.

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