CANBERRA: The local sharemarket has failed to recover from its early losses, with the big banks and resources among the drags on the ASX. The benchmark S & P/ASX200 index was 23.9 points, or 0.4 per cent, lower at midday (AEDT), with only the gold miners standing out as strong gainers against a widespread backdrop of red. The broader All Ordinaries index was down 22.0 points, or 0.38 per cent, at 5,789.2 points. The surge in values for the likes of Newcrest, Evolution and Regis — who were all up between 4.5 and 5.8 per cent — suggested investors were turning toward defensive sectors ahead of this week’s key global macro-economic and political events.
The biggest event for the market is the US central bank’s meeting, with the Federal Reserve expected to announce a rate increase by Thursday morning (AEDT). Investors are also focused on the results of Wednesday’s elections in the Netherlands, where the government is facing a strong challenge from an anti-Islam opposition party. The decline in the financial sector was broadly in line with the overall dip on the ASX200, with ANZ, Westpac, Commonwealth Bank and National Australia Bank falling between 0.7 per cent and 0.1 per cent.
Regional lenders Bank of Queensland and Bendigo and Adelaide Bank fell even further, both showing declines of more than one per cent. Rio Tinto, BHP Billiton and Fortescue Metals were all down more than one per cent with iron ore remaining below $US90, while energy shares tumbled after oil recorded its biggest three-day decline since early 2016. Santos, Oil Search and Woodside Petroleum were all down more than one per cent. The Australian dollar was trading higher at US75.35 cents, up from US75.19 cents on Friday.
