RTTNews - The Australian market ended sharply lower on Friday, despite positive closing in Wall Street on Thursday, dragged down by disappointing earnings, buying of Telstra stock at discount and concerns about Chinese banks.

The benchmark S&P/ASX200 Index shed 86.90 points, or 1.99%, to close at 4,291, while the All-Ordinaries Index ended at 4,306, representing a loss of 85.70 points, or 1.95%.

Light sweet crude oil price for September delivery ended at $72.49 a barrel in electronic trading, down $0.42 from its previous close $72.91 a barrel in New York on Thursday.

Banks declined sharply after Westpac Banking stated that flat quarterly earnings and a rise in bad debts is weighing down the banking sector. ANZ Bank lost 3.01%, Commonwealth Bank of Australia fell 3.18%, National Australia Bank slumped 4.39% and Westpac Banking declined 2.45%.

Telecommunications company Telstra declined 4.93% after federal government's Future Fund unloaded shares of the company equivalent to A$2.4 billion in the market in the previous session.

APN News & Media, the company that publishes more than 100 papers in Australia and New Zealand, reported a 53% drop in net profit for the first half, hurt by slumping advertising revenue. The shares declined 5.37%.

Apparel manufacturer Billabong International declined 5.10% following disappointing results.

Mining and metal stocks ended weaker. BHP Billiton declined 1.40%, Rio Tinto fell 2.96%, Fortescue Metals lost 1.55%, Gindalbie Metals shed 1.23%, and Oz Minerals slipped 0.90%.

Mixed trading was witnessed among energy stocks. Woodside Petroleum shed 0.80%, Oil Search lost 1.05% and Origin Energy fell 1.50%. However, Santos bucked the trend and advanced 1.77%.

In the U.S., stocks ended in positive territory for the third straight session on Thursday helped by positive economic data related to manufacturing sector that more than offset a disappointing weekly jobless claims report. The Dow closed up by 70.89 points or 0.8% at 9,350, the Nasdaq climbed by 19.98 points or 1% to 1,989 and the S&P 500 rose by 10.91 points or 1.1% to 1,007.

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