SYDNEY: The Australian stocks edged lower at the open following falls on Wall Street overnight as continued weakness in global OIL PRICES
weighed on resources stocks.
At the 10.15am (AEDT) official market open, the benchmark S&P/ASX200 index fell 7.7 points, or 0.13 per cent, to 5,943.1 points, while the broader All Ordinaries index slipped 6.2 points, or 0.1 per cent, to 5,906.3 points.
CMC chief market analyst Ric Spooner said softer OIL PRICES suggest the market is finding it hard to ignore the ongoing build up in US inventories and the fact that the economy can’t use what’s currently being produced.
“This may be a negative for the energy sector today and is a reminder to the broader market of excess capacity and weak inflation in global economies,” he said.
“Traders will also be alert to the possibility that the strength of buying for the major banks could follow through today pushing the ASX200 index closer to the much anticipated 6,000 level.”
Materials led the market lower losing 0.42 per cent as a sector.
