Chinese tariffs threaten to drown Australian wine exports: Aus shares up 0.9% over weekCraig Foley
After opening modestly lower, the ASX200 lost ground throughout the day to close 0.5 per cent lower. All of the sectors ended in the red, except Real Estate Investment Trusts. Australia’s wine industry was dealt a blow today. The Chinese Government announced new tariffs-like deposits of up to 200 per cent on all Australian wine imports from tomorrow. The Australian wine industry rakes in around $1.2 billion per annum. The decision follows the preliminary findings of a Chinese anti-dumping investigation into Australia's wine exports. The investigation contends that Australian wine makers are dumping product in China at deliberately low prices in a bid to muscle out local producers and claim a bigger market share, and has found that such dumping may be causing Chinese winemakers “substantial harm”. The decision comes after China's Commerce Ministry issued instructions to importers to suspend orders of wine earlier this month.
At the closing bell the S&P/ASX 200 index closed 35 points lower to finish at 6,601.
Over the week, the Australian market has gained 62 points or 0.9 per cent.
Wrapped up our trading week higher: The S&P 500 and the Nasdaq added almost 2 per cent, while the Dow Jones gained over 2 per cent.
Dow futures are suggesting a rise of 13 points.
S&P 500 futures are eyeing a rise of 5 points.
The Nasdaq futures are eyeing a lift of 15 points.
And the ASX200 futures are eyeing a dip of 37 points on Monday morning.
Treasury Wine Estates (ASX:TWE) requested a trading halt this afternoon after its shares plunged on the back of a decision by the Chinese Ministry of Commerce. The ministry released a decision to apply provisional anti-dumping measures to Australian wine imports into China. Treasury Wine Estates owns the Penfolds and Wolf Blass brands and is one of the world's largest wine companies. It is responsible for around 40 per cent of the wines Australia ships to China. Meanwhile, the company has suspended work on the demerger of the Penfold business – a business which generates around 50 per cent of its profits. Shares in Treasury Wine Estates (ASX:TWE) closed 11.3 per cent lower at $9.23.
New Zealand energy company, Genesis Energy (ASX:GNE) today announces that it is undertaking a strategic review to determine whether to sell or retain its interest in Kupe.
AnteoTech (ASX:ADO) has received a tax refund of almost $1.2 million under the Federal Government’s Research & Development Tax Incentive Scheme.
Shares in Bega Cheese (ASX:BGA) have rallied this morning, after it successfully raised $284 million, to help fund the acquisition of Lion Dairy and Drinks.
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Source: Finance News Network