Market drops but dollar goes up

WIDESPREAD selling sent the share market to a second consecutive fall, while stronger than expected retail sales growth lifted the Australian dollar.

The benchmark S&P/ ASX200 index dropped 0.5 per cent to 6067.6 points, and the local currency hit a high of 78.86 US cents, its best level since October.

CommSec market analyst Steven Daghlian said the main weight on the share market was the financial sector, though there was no key driver behind its fall.

Retail sales rose 1.2 per cent in November, beating expectations of a rise of 0.4 per cent, driven by the release of the iPhone X and promotions such as Black Friday.

Harvey Norman gained 1.4 per cent to $4.38 and auto and sports retailer Super Retail Group added 3.5 per cent to an eight month high of $8.77.

The supermarket giants were mixed, with Woolworths up 0.4 per cent and Coles owner Wesfarmers down 0.5 per cent.

The Australian dollar jumped one third of a cent when the retail figures were released, and surged again to its intraday high late in the afternoon.

Among the big four banks, ANZ shed 0.2 per cent, Westpac dropped 0.5 per cent and Commonwealth Bank fell 0.4 per cent, while National Australia Bank gained 0.1 per cent.

Rio Tinto was steady, while BHP Billiton and Fortescue Metals each fell 0.4 per cent.