PERTH: The Australian sharemarket has dropped by 1 per cent at noon, as resources stocks and financials weaken ahead of the Reserve Bank’s interest rate decision this afternoon.
At 12.05pm (AEST), the benchmark S & P/ASX200 index was down 61.8 points, or 1.08 per cent, at 5673.9, while the broader All Ordinaries index was down 58.4 points, or 1.02 per cent, at 5675.6.
The local market was continuing yesterday’s downward trajectory, as commodity prices added to the momentum.Energy stocks were weighing on the bourse, as the strengthening US dollar caused a slip in global oil prices overnight.
Mining stocks and the financials were also deep in the red at noon.
Meanwhile, the Australian dollar touched a seven-week low, dipping below the US76c mark overnight, before staging a minor recovery.
The central bank was to hand down its rates decision at 2.30pm (AEST) and was widely expected to keep the cash rate unchanged after cutting it to a new record low of two per cent in May.
Elsewhere, the ANZ-Roy Morgan weekly consumer confidence survey was steady last week, holding onto the gains made after the release of the federal budget in May.
The Australian Bureau of Statistics’ balance of payments figures showed the current account deficit widened, though by slightly less than economists had expected.
The local stock market closed weaker yesterday as investors backtracked on the big gains made on Friday.
