PERTH: The Australian stocks was one per cent lower at noon, as a further decline in the iron ore price over the weekend weighed heavily on the resources and utilities sectors.
At 12.05pm (AEDT) the benchmark S&P/ASX200 index fell 58.7 points, or 1 per cent, to 5,840.2 points while the broader All Ordinaries index lost 57.7 points, or 0.98 per cent, to 5,810.9 points.
Also over the weekend, the Labor Department said the US economy added 295,000 jobs in February, pushing the unemployment rate down two-tenths to 5.5 per cent, the lowest level since May 2008.
CMC chief market analyst Ric Spooner said while strong US jobs growth is good news for economies, it looks like triggering a downward adjustment in stock prices as investors adapt to the increasing likelihood of higher US interest rates.
“The early stage of Fed tightening cycles tends to be bullish for stock markets as growth improves,” he said.
“In this case, however, markets are starting from a high valuation base creating the potential for some ‘froth’ to be knocked off valuations as markets adjust for the possibility of higher US bond yields.”
