PERTH: The Australian sharemarket opened the week well in the red after strong US jobs data over the weekend sharpened investor focus on the US Fed’s looming rates decision.
At the 10.15am (AEDT) official market open, the benchmark S&P/ASX200 index was 41.4 points, or 0.79 per cent, lower at 5173.6 points, while the broader All Ordinaries fell 38.2 points, or 0.72 per cent, to 5231.5 points.
CMC chief market analyst Ric Spooner said a raft of news including strong US jobs data, weak Chinese trade figures and lower commodity prices were likely to weigh on the local market.
“Strong US jobs data for October leaves little doubt that, barring any unforeseen setbacks, the Fed is close to beginning its rate tightening cycle,” he said.
“Mounting certainty that the Fed will hike rates in December comes after an 11 per cent rally in the S&P 500 since late September. This creates potential for a pause or pullback in the stock market.”
Materials weighed heaviest on the market, losing 2.42 per cent after the iron ore price slumped to a four-month low.
BHP Billiton slumped 3.48 per cent to $21.91 as it continues to deal with the fallout from two giant mining dams bursting in central Brazil. Rio Tinto gave up 2.03 per cent to $49.77.
Energy stocks also fell sharply, losing 1.66 per cent.
Oil Search slipped 1.14 per cent to $7.82 but Woodside retreated 2.17 per cent to $29.33.
Consumer staples slipped 0.62 per cent.
Woolworths fell 0.91 per cent to $23.87 and Wesfarmers gave up 0.84 per cent to $38.80.
Financials fell 0.54 per cent as a sector.
The banks were firm, as Commonwealth Bank lost 0.33 per cent to $76.34 while ANZ shares ticked down 0.92 per cent to $25.73 trading without its dividend.
