Australia: Shares fall for third straight session as financials drag

AUSTRALIAN shares fell for a third straight session on Wednesday (Nov 16), dragged by declines in financials, amid weakness in global equities as news of a Russian-made missile strike in Poland sparked fears of heightened geopolitical tensions.

The S&P/ASX 200 index closed 0.3 per cent lower at 7,122.20. The benchmark has lost 0.5 per cent so far this week.

Nato member Poland said a Russian-made rocket killed two people in eastern Poland near Ukraine. Moscow denied it was responsible and US President Joe Biden said early information suggested the missile may not have come from Russia.

“Market participants are exercising caution towards equities because of a persistent feeling of an approaching severe economic downturn, coupled with this new geopolitical anxiety,” said Kunal Sawhney, chief executive officer of Kalkine Group, referring to the blast in Poland.

Financial stocks fell 1 per cent to lead declines on the benchmark. The so-called “big four” banks fell between 0.3 per cent and 1.8 per cent.

Healthcare stocks and tech stocks lost 0.8 per cent and 0.2 per cent, respectively.

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Mining stocks climbed 0.8 per cent after iron ore extended its rally to a fourth straight session.

Energy stocks rose 1.2 per cent even as oil prices slipped, sparked by worries of lower fuel demand in the world’s top crude importer China that outweighed concerns of tighter oil supply.

In New Zealand, the benchmark S&P/NZX 50 index closed 0.1 per cent lower at 11,230.55. REUTERS