Australia: Shares end lower on US stimulus uncertainty, weak manufacturing data

[SYDNEY] Australian shares slipped on Friday, with gold stocks leading losses, as sentiment was hit by uncertainty over a US stimulus deal and a preliminary survey showing weaker-than-expected domestic manufacturing activity in October.

The S&P/ASX 200 index closed down 0.1 per cent at 6,167.00.

It lost 0.8 per cent in a week riddled with market volatility driven by developments in the US coronavirus relief deal.

With the US Presidential elections less than two weeks away and a stimulus deal still elusive, investor caution was set in after the conclusion of the final debate between President Donald Trump and his Democrat challenger Joe Biden on Thursday.

"Neither side will commit to a deal now this close to the election. If it can be used to gain some leverage by either side, nothing will be agreed upon," said Brad Smoling, managing director at Smoling Stockbroking.

House Speaker Nancy Pelosi on Thursday said negotiators were making progress in talks with the White House for another round of Covid-19 stimulus, but Senate Republicans remained skeptical of a possible deal.

On the domestic front, a preliminary IHS Markit survey showed Australian manufacturing activity in October expanded at a weaker pace than last month, as coronavirus-driven lockdowns in parts of the country continued to hamper economy recovery.

New Zealand's benchmark S&P/NZX 50 index gained 0.5 per cent at 12,470.34. On a weekly basis, the benchmark has gained 0.5 per cent, extending a four-week winning streak.

REUTERS