Headline indices of the Australian financial market closed down after erasing early gains on Wednesday, 20 February 2019, as gains by materials and resources failed to outweigh losses from the consumer and property sectors. At closing bell, the benchmark S&P/ASX200 index finished down 10.39 points, or 0.17%, at 6,096.49 points, while the broader All Ordinaries was down 8.44 points, or 0.14%, at 6,175.76.

The two countries (US-China) started a new round of talks to resolve their trade war on Tuesday, and sessions at a higher level are planned later this week. US President Donald Trump said on Tuesday that trade talks with China were going well and suggested he was open to pushing off the deadline to complete negotiations, saying March 1 was not a magical date. Tariffs on $US200 billion worth of Chinese imports are currently scheduled to rise to 25% from 10% if no trade deal is reached by March 1.

Investors will also look to the release on Wednesday of minutes from the Federal Reserve's January policy-setting meeting, where policymakers took a dovish turn, effectively signalling no further rate hikes. New York Fed President John Williams endorsed such an outlook, suggested he is comfortable with the US interest rate level and sees no need to raise them again unless economic growth or inflation shifts.

Shares of consumer staple issue declined, with Woolworths leading retreat, down 5.2% after supermarket chain operator warned of a prolonged slump in consumer sentiment as it posted lower-than-expected first-half profit on Wednesday. Retail peers Wesfarmers Ltd and Coles Group Ltd slid 1.6% and 5.9%, respectively.

Crown Resorts shares fell 5.3% after the country's biggest casino operator reported a sharp decline in Chinese spending at its properties, as its half-year profit missed analyst estimates.

Imaging company Nearmap and A2 Milk both soared to all-time highs on positive earnings reports, with Nearmap up 7.53% and A2 up 10.53%.

Shares of materials and resources fell. BHP gained 2.51% and Rio Tinto added 2.62% while Fortescue Metals gained 5.35% despite reporting a five% fall in half-year profit. Newcrest Mining was up 1.88% and Northern Star was up 3.56% after the price of gold hit a 10-month high overnight.

ECONOMIC NEWS: Australia Wage Prices Up 0.5% On Quarter In Q4 -- Australia wage prices were up a seasonally adjusted 0.5% on quarter in the fourth quarter of 2018, the Australian Bureau of Statistics said on Wednesday, as against an increase of 0.6% in the previous quarter. On a yearly basis, wage prices advanced 2.3%.

CURRENCY: Australian Dollar was up against greenback and against a basket of other peers on Wednesday. The Aussie dollar is buying 71.64 US cents, from 71.12 US cents on Tuesday.