Australian and New Zealand shares ended lower on Friday in line with a selloff in global markets after the European Central Bank failed to impress with its latest round of policy easing. The S&P/ASX 200 index closed 76.12 points, or 1.5 percent, lower at 5,151.60. On the week, it was down 1 percent, posting a second week of losses. New Zealand's benchmark S&P/NZX 50 index shed 30.85 points, or 0.50 percent, to 6,094.82. It eased 0.10 percent on the week.
Latest comments from Federal Reserve officials also suggested that a December US interest rate hike is almost a done deal, barring any unexpected shocks from payrolls due later in the day. This combination has conspired to send global markets into a tailspin, said Chris Conway, head of research at Australian Stock Report. "Whilst today will be ugly, investors should not panic. This process of readjustment from global central banks has been and will continue to be an ongoing and sometimes violent process."
Losses were broad and included the index heavyweights such as the big four banks and major miners. Leading the lenders was ANZ Bank, which slid 2.8 percent. Among the miners, Rio Tinto dropped 2.5 percent to its lowest in nearly seven years. BHP Billiton fell 1.5 percent and hit a 10-year low of A$17.81. New Zealand's benchmark NZX 50 index fell 0.8 percent, or 46.39 points, to 6,079.20, pulling further away from Wednesday's record high of 6,162.97.
The benchmark was headed for a weekly loss of 0.36 percent, after two weeks of gains. Trade Me fell 1.8 percent as investors took profits ahead of the weekend after the online auction company rose to a one-year high the previous session. Meridian Energy led losses, falling 2.9 percent while Genesis Energy lost 1.9 percent. Shares in Fonterra's fund, which provides investor exposure to the farmer-owned dairy exporter, rose 0.7 percent. A global dairy auction held early on Wednesday morning had shown that milk prices were stabilising.
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