SYDNEY: The Australian sharemarket retreated in the morning session, with broadbased declines following the release of some indifferent economic data.
At 12.05pm (AEDT), the benchmark S & P/ASX200 index was down 53.5 points, or 1.02 per cent, to 5185.9 while the broader All Ordinaries had eased 48.1 points, or 0.91 per cent, to 5240.5.
The benchmark had ticked up 0.1 per cent at the open but declined as Australian Industry Group figures showed a slowing of manufacturing activity in October. Australian Bureau of Statistics data found the trend rate of building approvals had fallen for a seventh straight month, despite a better-than-expected jump in September approvals.
Elsewhere, Westpac delivered a modest 3 per cent lift in full-year cash earnings, buoyed by the strength of its Australian retail and business banking operations, and said the outlook for the economy remains positive.
IG market strategist Evan Lucas said the final Caixin manufacturing purchasing managers index read out of China today would be watched by investors while economists and the market were largely agreed on the chances of a Melbourne Cup Day rate cut tomorrow — 12 out of 29 economists expecting at snip while there was a 40.1 per cent chance according to the interbank market. The market was pricing in a 73 per cent chance of a cut on December 1, he said.
Weekend data showed activity in China’s vast manufacturing sector in October shrank for the third month in a row, with the official Purchasing Managers’ Index coming in at 49.8 last month, below the 50 point level which separates expansion from contraction.
The market had initially ticked up on weekend data leads which had included a long-awaited rally in iron ore prices, but another drop in copper prices.
Financials were leading the market lower, down 1.42 per cent overall as Westpac shares fell 1.67 per cent $30.78.
National Australia Bank retreated 1.29 per cent to $29.76, ANZ shares slipped 1.43 per cent to $26.82 while Commonwealth Bank fell 1.59 per cent to $75.51.
Materials were off 0.48 per cent.
BHP Billiton was down 0.65 per cent to $22.87 while Rio Tinto lost 0.73 per cent to $50.28. Metgasco was up 6.25 per cent to 5.1c after it was revealed the NSW Government would buy its North Coast coal-seam gas mining licences for $25m.
In the consumer staples sector — which was down 0.98 per cent — Woolworths was off 1.04 per cent at $23.86 while Wesfarmers fell 1.12 per cent to $38.97.
