It’s been a dismal end to the week for the local share market closing 1.46 per cent lower, after investors sold-off on the back of a muted decision by the ECB with respect to its quantitative easing program. Major markets were hoping that ECB President Mario Draghi would have done more than simply extend the bank’s 60 billion euro QE program to March 2017 and cut interest rates by 10 basis points to minus 0.3 per cent.
In terms of our various sectors all of them finished in the red, but it was the big four banks and mining giants BHP and Rio Tinto which proved to be the biggest drag on the market.
Today, the S&P/ASX 200 index closed 76 points lower to finish at 5,152.
Over the week the index lost 51 points.
The value of trades was $5.3 billion on volume of 808 million shares at the close of trade. The top three stocks by value were Commonwealth Bank of Australia
(ASX:CBA), ANZ Banking Group
(ASX:ANZ) and BHP Billiton Limited
(ASX:BHP).
On the futures market the SPI is 72 points lower.
US Markets
Looking at Wall Street, US major indexes have retreated over the four trading days this week: The Dow Jones Industrial Average has lost 1.9 per cent. The S&P 500 Index has lost 2 per cent. The NASDAQ has retreated 1.8 per cent. The 100 Index has slipped 1.6 per cent.
Economic news
It seems Aussies have started their Christmas shopping early this year with retail sales growing 0.5 per cent in October, according to the latest figures from the Australian Bureau of Statistics. This is the third straight month that sales have increased, after rising 0.4 per cent in September.
Company news Superloop Limited
(ASX:SLC) has announced plans to establish a 110 kilometre fibre optic network and operations in Hong Kong. The announcement follows the company securing its telecommunications licence in Hong Kong in August, allowing it to build, operate and provide telecommunications services. Shares in Superloop closed up 8.49 per cent at $2.30.
Virgin Australia Holdings
(ASX:VAH) has received the go-ahead from the ACCC to continue its alliance with Etihad for a further five years.
Telstra Corporation Limited
(ASX:TLS) Retail Group Executive Dr Karsten Wildberger has resigned after less than 2 months in the role.
Best and worst performers
All sectors were in the red, but the one with the least losses was Staples losing 0.2 per cent to close at 8,321. The worst performing sector was Financials excluding REITs, losing 1.8 per cent to close at 7,003 points.
The best performing stock in the S&P/ASX 200 was Regis Resources, rising 6.23 per cent to close at $1.96. Shares in Ten Network and Pacific Brands also closed higher.
The worst performing stock was Magellan Financial, dropping 8.82 per cent to close at $24.30. Shares in Estia Health and Regis Healthcare also closed lower.
Commodities
The price of gold is trading at $US1,062 an ounce, and is down $6.56 over the week.
Light crude is up $1.33 at $US41.27 a barrel.
The Australian dollar is buying 73.17 US cents and is up 0.85 cents over the week.
