ASX ends 0.67pc down, run of gains over

A run of seven consecutive sessions of gains came to an end for the ASX as all industry sectors finished lower after a poor US lead.

The S&P/ASX200 benchmark index closed lower by 45.4 points, or 0.67 per cent, to 6683.1 on Thursday.

The All Ordinaries closed lower by 48.3 points, or 0.69 per cent, to 6917.1.

The materials sector fell by 0.77 per cent after doing well for much of the last week on higher iron ore prices.

There were also notable losses for healthcare (0.98 per cent) and industrials (0.99) per cent.

Information technology had the greatest decline, 2.09 per cent.

Earlier US markets closed lower after Senate Majority Leader Mitch McConnell did not deliver the news investors wanted of a government relief package to help the coronavirus-battered economy.

Mr McConnell said Congress was still looking for a path toward agreement on COVID-19 aid.

The US is also under pressure to approve a coronavirus vaccine, after the United Kingdom did earlier this week.

The US lost 3000 people to COVID-19 in one day this week, and the illness is putting great strain on hospitals.

Bell Direct market analyst Jessica Amir said the US lead, and the ASX run of gains contributed to the result.

"Uncertainty crept back in," she said of investors' hopes for US economic stimulus.

ThinkMarkets analyst Carl Capolingua said trading volumes started to shrink at this time of year, meaning the ASX became more vulnerable to influences.

On the economic front, the Reserve Bank warned some Australians face a prolonged period of unemployment as a result of the pandemic.

In a monthly bulletin, the bank said while the economic outlook is highly uncertain, it is likely that the unemployment rate will remain elevated for a number of years.

Meanwhile, a border stoush between Western Australia and South Australia over interstate travel is likely to persist until Christmas.

South Australians travelling to WA will be required to quarantine until at least Christmas Day with the Premier Mark McGowan refusing to budge on coronavirus rules.

On the ASX, gold miners had a terrible time after gold prices slipped more than two per cent.

Investors sold the safe haven prior to the US stimulus talks stalling.

Northern Star was down 5.62 per cent to $12.27 and merger partner Saracen Mineral fell by 5.75 per cent to $4.59.

The Supreme Court of Western Australia on Wednesday ordered the two companies to continue preparations for the merger.

Among the big miners, BHP lost 0.59 per cent to $42.48 and Rio Tinto shed 0.04 per cent to $115.39.

Fortescue gained 3.26 per cent to $22.51.

After trade, the company responded to recommendations from a federal inquiry into Rio Tinto's destruction of the sacred Juukan Gorge caves in Western Australia.

Chief executive Elizabeth Gaines said the company did not agree with a proposal for a stay on some approved projects.

Pharmaceuticals provider Starpharma was one of the standout performers.

It said its coronavirus nasal spray should be available sooner than first anticipated, after regulatory progress.

The company said it had completed more than 90 per cent of the paperwork for European Union approval of the spray, and is on track to gain approval and make the product available in Europe in the first quarter of next year.

Shares closed higher by 11.11 per cent to $1.45.

Tomorrow, items of interest will include Westpac's annual general meeting.

The Aussie dollar was buying 74.67 US cents at 1726 AEDT, higher from 74.38 US cents at Wednesday's close.

ON THE ASX

* The S&P/ASX200 benchmark index closed lower by 45.4 points, or 0.67 per cent, to 6683.1 on Thursday.

* The All Ordinaries closed lower by 48.3 points, or 0.69 per cent, to 6917.1.

* At 1726 AEDT, the SPI200 futures index was lower by two points, or 0.03 per cent, to 6684.

CURRENCY SNAPSHOT

One Australian dollar buys:

* 74.67 US cents, from 74.38 cents on Wednesday

* 77.99 Japanese yen, from 77.59 yen

* 61.75 Euro cents, from 61.34 cents

* 55.88 British pence, from 55.63 pence

* 106.14 NZ cents, from 105.33 cents.