The share market has reversed earlier gains to close lower after falls by financials and healthcare companies outweighed gains in the energy and telco sectors. The benchmark S&P/ASX200 was down 0.2 per cent at 5,737.2 points at the close of trade, after being 0.2 per cent higher in early trade.
The big four banks were relatively steady, though Commonwealth Bank shed 0.6 per cent, and faces a potential shareholder class action related to the allegations it breached anti-money laundering laws. The health care sector was also impacted by disappointing financial results. The energy sector was stronger, with Woodside Petroleum, Santos, Oil Search and Origin gaining between 0.85 per cent and 1.9 per cent after global oil prices rose on expectations of further falls in US supplies.
The Australian dollar dropped below 78.92 US cents as the US dollar rose on improved sentiment around the Trump administration's economic agenda. The spot price of gold in Sydney at 1700 AEST was $US1,286.15 per fine ounce, up from $US1,285.00 per fine ounce on Tuesday.
What this means for you:
With continuing instability in the markets, it is a good time to remember the importance of having not only a diversified portfolio but maintaining that diversification across the asset classes within your portfolio. As you can see from this week's market update different sectors are affected by different events nationally and globally, so whilst we may see a fall in the price of the banks or the health sector, this may be balanced out by rises in other sectors such as energy. Stay disciplined with your investing.