PERTH: The Australian sharemarket started the day’s trade in the red after weak earnings weighed on Wall Street.
At the 10.15am (AEST) official market open, the benchmark S&P/ASX200 lost 45.6 points, or 0.8 per cent, to 5,661.1, while the broader All Ordinaries index declined 42.4 points, or 0.75 per cent, to 5,646.1.
CMC Markets chief market strategist Michael McCarthy said that the market’s dismay at IBM and Apple was not solely to blame for the poor showing on offshore exchanges.
“A global trimming of portfolios after an eight-day rally is a more likely explanation for the general malaise,” Mr McCarthy said.
“Despite the general sell-off, commodity prices rose, mainly due to the weakening US dollar. Gold regained ground above $US1,100, and West Texas oil recaptured $US50. These moves may slow or even reverse the resource sector rout.”
BHP’s quarterly production report this morning would also draw attention, with copper write downs and lower coal production offset by forecast beating iron ore sales, Mr McCarthy said.
Financials sank 1 per cent collectively. ANZ sank 0.85 per cent to $32.77, Commonwealth Bank plummeted 1.08 per cent to $87.15, NAB slipped 0.69 per cent to $34.53 and Westpac was 0.8 per cent lower at $34.62.
Materials declined 0.21 per cent as a sector. BHP dipped 0.48 per cent to $26.69 and Rio Tinto edged 0.15 per cent lower to $53.30. OZ Minerals surged 5.07 per cent to $3.94, while Fortescue gained 0.57 per cent to $1.75.
