$A opens lower as traders buy US unit

Australian Money Source: Supplied

THE Australian dollar is weaker after a weekend article in the Wall Street Journal convinced traders to snap up the US greenback.

At 0700 on Monday, the Australian dollar was at 100.03 US cents, after falling below parity with the greenback on Saturday morning for the first time in 11 months.

Westpac New Zealand senior market strategist Imre Speizer said a weekend article in the Wall Street Journal, by chief economics correspondent Jon Hilsenrath, sparked a buy-up of the US dollar. The article suggested the US Federal Reserve would wind back its quantitative easing policy of buying of American government bonds.

"There was a rumour that this article would come out on Friday and that rumour caused stampede buying of US dollars against most other currencies," he said, adding that a slowdown in asset market stimulus would hurt risk-appetite currencies like the Australian dollar.

It, in turn, caused the Australian dollar to fall below parity with the greenback - to 99.61 cents - on Saturday morning for the first time since June 2012.

"You should get further reaction to this, so a move towards 99 (US cents) over the next few days would be what I'd expect."

AAP saj/cdh

View the original article here

$A opens lower as traders buy US unit

Australian Money Source: Supplied

THE Australian dollar is weaker after a weekend article in the Wall Street Journal convinced traders to snap up the US greenback.

At 0700 on Monday, the Australian dollar was at 100.03 US cents, after falling below parity with the greenback on Saturday morning for the first time in 11 months.

Westpac New Zealand senior market strategist Imre Speizer said a weekend article in the Wall Street Journal, by chief economics correspondent Jon Hilsenrath, sparked a buy-up of the US dollar. The article suggested the US Federal Reserve would wind back its quantitative easing policy of buying of American government bonds.

"There was a rumour that this article would come out on Friday and that rumour caused stampede buying of US dollars against most other currencies," he said, adding that a slowdown in asset market stimulus would hurt risk-appetite currencies like the Australian dollar.

It, in turn, caused the Australian dollar to fall below parity with the greenback - to 99.61 cents - on Saturday morning for the first time since June 2012.

"You should get further reaction to this, so a move towards 99 (US cents) over the next few days would be what I'd expect."

AAP saj/cdh

View the original article here

Dollar lower ahead of jobs figures

THE Australian dollar is nearly a third of a US cent lower ahead of the release of key monthly employment figures.

At 0700 AEST today, the currency was trading at 101.71 US cents, down from 102.01 US cents yesterday afternoon.

Westpac New Zealand senior market strategist Imre Speizer said the Australian dollar traded in a fairly narrow range overnight with positive global sentiment preventing it from falling below the 101.55 US cent level it dropped to in the wake of Tuesday's interest rate cut.

"It's been stuck just above that level and it is probably being held by the global market sentiment which is pushing equity markets higher," he said.

The Reserve Bank of Australia cut the cash rate to a record low of 2.75 per cent at its monthly board meeting, which reduced demand for the currency.

Mr Speizer said the main driver for the currency today would be the release of the Australian Bureau of Statistics' labour force figures for April at 1130 AEST.

An AAP survey of 14 economists shows a median forecast for the unemployment rate to be steady at 5.6 per cent for April with total employment growing by 11,000.

He said the currency was likely to move higher if the data showed stronger-than-expected jobs growth and fall if the figures were weaker than expected.
 

View the original article here

Dollar lower ahead of RBA decision

THE Australian dollar is lower ahead of the Reserve Bank of Australia's interest rate decision.

At 7am AEST today, the currency was trading at 102.54 US cents, down from 102.72 US cents yesterday afternoon.

The Reserve Bank of Australia (RBA) will announce its interest rate decision at 2.30pm AEST today after its monthly board meeting.

All 13 economists surveyed by AAP last week expected the RBA to keep the cash rate unchanged at three per cent.

But BK Asset Management managing director Kathy Lien said the market had put the odds of a rate cut at around 55 per cent.

Ms Lien said that while a rate cut would push the Australian dollar below 102 US cents, traders would also look closely at the statement accompanying the decision.

She said a cautious and dovish statement would weigh on the currency, even if the cash rate remained unchanged.

"Whether the AUD (Australian dollar) holds above 1.02 or drops to fresh two-month lows will hinge upon the tone and action of the RBA," she said. "Given the potential for a rate cut and the significance of this event, the risk is to the downside."

View the original article here

Dollar lower ahead of RBA decision

THE Australian dollar is lower ahead of the Reserve Bank of Australia's interest rate decision.

At 7am AEST today, the currency was trading at 102.54 US cents, down from 102.72 US cents yesterday afternoon.

The Reserve Bank of Australia (RBA) will announce its interest rate decision at 2.30pm AEST today after its monthly board meeting.

All 13 economists surveyed by AAP last week expected the RBA to keep the cash rate unchanged at three per cent.

But BK Asset Management managing director Kathy Lien said the market had put the odds of a rate cut at around 55 per cent.

Ms Lien said that while a rate cut would push the Australian dollar below 102 US cents, traders would also look closely at the statement accompanying the decision.

She said a cautious and dovish statement would weigh on the currency, even if the cash rate remained unchanged.

"Whether the AUD (Australian dollar) holds above 1.02 or drops to fresh two-month lows will hinge upon the tone and action of the RBA," she said. "Given the potential for a rate cut and the significance of this event, the risk is to the downside."

View the original article here

Shares lower at noon

Good news for Aussie investors while the S&P 500 in the US closes at a record high.

AUSTRALIAN stocks are weaker at noon as investors book profits following the release of soft manufacturing data in China.

China manufacturing activity in April slowed slightly from the previous month in a sign of further weakness in the world's second-biggest economy.

IG Markets analyst Evan Lucas said the Chinese figures were relatively benign, while locally there had been light trading as most Asian markets were closed.

"There has been a bit of profit taking as well," Mr Lucas said.

Resources stocks were weaker. BHP Billiton was down 55 cents, or 1.68 per cent, to $32.15; Rio Tinto fell $1.00, or 1.79 per cent, to $54.80; and Fortescue Metals dropped five cents, or 1.43 per cent, to $3.45. Newcrest Mining, the nation's largest goldminer, shed 37 cents, or 2.2 per cent, to $16.44 despite gold prices recovering.

Mr Lucas said mining giants BHP Billiton and Rio Tinto had been punished in London overnight following falls in most commodity prices.

"That's why they're off."

The major banks were mixed after three of the four reached record intra-day highs yesterday.

National Australia Bank was flat at $34.00; Commonwealth Bank dropped 28 cents to $73.17; ANZ lost four cents to $31.79; but Westpac gained 13 cents to $33.92. Telstra was one of the few bright sparks, trading at an eight-year high, as nervous investors looked for strong yields. Its shares were two cents, or 0.4 per cent, higher at $5.00.

Making news, funds manager BT Investment Management said it had doubled its first half net profit thanks to a lift in global markets. Its shares are up 15 cents, or 4.27 per cent, at $3.66, at 12.42pm AEST.

And, ASX said its statutory profit after tax was up 1.7 per cent to $260.7 million in the first nine months of the year, according to unaudited figures. Its shares were up 29 cents at $37.89. The Australian share market gained 4.53 per cent in April but it has fallen in May for the last three years.

KEY FACTS

* At 12pm AEST today, the benchmark S&P/ASX200 index was down 20.7 points, or 0.39 per cent, at 5170.8 points.

* The broader All Ordinaries index was down 21.9 points, or 0.43 per cent, at 5146.6 points.

* The June share price index futures contract was seven points lower at 5161 points, with 10,783 contracts traded.

* National turnover was 962 million securities worth $1.6 billion.

View the original article here

Procter, AT&T pull Dow lower

SHARP earnings-related falls in AT&T and Procter & Gamble have pulled the Dow lower while the other main indices closed flat.

The Dow Jones Industrial Average today dropped 43.16 points (0.29 per cent) to 14,676.30.

The broad-based S&P 500 was essentially flat at 1578.79, while the Nasdaq Composite Index added 0.32 (0.01 per cent) to 3269.65.

Dow component AT&T sank 5 per cent after profit margins in both the wireline and wireless businesses came in lower than expected in its first quarter earnings report. Citigroup slashed its recommendation to "neutral" citing slower expected revenue growth in 2013.

Consumer goods giant Procter and Gamble, another Dow member, reported higher quarterly profits, but fell 5.9 per cent after revenue figures disappointed. A Morgan Stanley note rued the poor "quality" of the results, citing weak organic sales growth.

Other blue-chip losers included Cisco (down 2.5 per cent) and Walmart (down 1.3 per cent).

Among those gaining were Alcoa (up 3.6 per cent), Microsoft (up 3.8 per cent) and General Electric (up 2.1 per cent).

Technology giant Apple took an erratic trajectory, rising and falling throughout the day on the heels of its first drop in quarterly earnings in nearly 10 years.

But that was mitigated by plans to double to $US100 billion ($97.85 billion) by 2015 the sum it spends on buybacks and dividends.

Apple shares traded between $US392.50 and $US415.25, before settling at $US405.46, down 0.2 per cent.

Car giant Ford dipped 0.2 per cent despite reporting stronger profits from growth in North America. But the company's European division turned in another loss.

Boeing jumped 3 per cent after besting analyst expectations by a wide margin. The company said the retrofitting costs of resolving the battery problems on the grounded 787 aircraft would have only a minor impact on financials.

Yum! Brands, the parent of Taco Bell and other fast food franchises, gained 7 per cent after net income bested expectations by a wide margin.

Bond prices were unchanged. The yield on the 10-year Treasury held flat at 1.70 per cent the same level as yesterday, while the 30-year bond also remained at 2.89 per cent. Bond prices and yields move inversely.

View the original article here

Procter, AT&T pull Dow lower

SHARP earnings-related falls in AT&T and Procter & Gamble have pulled the Dow lower while the other main indices closed flat.

The Dow Jones Industrial Average today dropped 43.16 points (0.29 per cent) to 14,676.30.

The broad-based S&P 500 was essentially flat at 1578.79, while the Nasdaq Composite Index added 0.32 (0.01 per cent) to 3269.65.

Dow component AT&T sank 5 per cent after profit margins in both the wireline and wireless businesses came in lower than expected in its first quarter earnings report. Citigroup slashed its recommendation to "neutral" citing slower expected revenue growth in 2013.

Consumer goods giant Procter and Gamble, another Dow member, reported higher quarterly profits, but fell 5.9 per cent after revenue figures disappointed. A Morgan Stanley note rued the poor "quality" of the results, citing weak organic sales growth.

Other blue-chip losers included Cisco (down 2.5 per cent) and Walmart (down 1.3 per cent).

Among those gaining were Alcoa (up 3.6 per cent), Microsoft (up 3.8 per cent) and General Electric (up 2.1 per cent).

Technology giant Apple took an erratic trajectory, rising and falling throughout the day on the heels of its first drop in quarterly earnings in nearly 10 years.

But that was mitigated by plans to double to $US100 billion ($97.85 billion) by 2015 the sum it spends on buybacks and dividends.

Apple shares traded between $US392.50 and $US415.25, before settling at $US405.46, down 0.2 per cent.

Car giant Ford dipped 0.2 per cent despite reporting stronger profits from growth in North America. But the company's European division turned in another loss.

Boeing jumped 3 per cent after besting analyst expectations by a wide margin. The company said the retrofitting costs of resolving the battery problems on the grounded 787 aircraft would have only a minor impact on financials.

Yum! Brands, the parent of Taco Bell and other fast food franchises, gained 7 per cent after net income bested expectations by a wide margin.

Bond prices were unchanged. The yield on the 10-year Treasury held flat at 1.70 per cent the same level as yesterday, while the 30-year bond also remained at 2.89 per cent. Bond prices and yields move inversely.

View the original article here

Dollar lower after US stocks fall

THE Australian dollar hit a five-week low as a combinations of factors drove US and European stocks lower.

At 0700 AEST today, the local unit was trading at 102.97 US cents, down from 103.63 cents yesterday.

Early this morning (AEST), the Australian dollar reached 102.77 US cents, the currency's lowest level since March 12.

Westpac New Zealand senior market strategist Imre Speizer said investors moved out of riskier assets overnight, which drove stock markets and the Australian dollar lower.

"A part explanation would be disappointing US company reports," Mr Speizer said from Auckland.

"The gold price fell a bit but not much, the other commodities fell, notably copper."

The euro posted a two-week low against the US dollar of 130.02 US cent in overnight trade.

Mr Speizer said the euro's decline came after Jens Weidmann, a member of the European Central Bank's governing council, said interest rate could be further cut if conditions in the euro zone worsened.

It also put downward pressure on the Australian dollar.

Mr Speizer said he expected the Australian dollar to trade in a range between 102.50 US cents and 103.40 cents during today's local session.

View the original article here

Market opens lower after Wall St falls

THE Australian stock market looks set to open lower after a negative finish on Wall Street and slumping commodities prices.

At 0709 AEST today, the June share price index futures contract was 33 points lower at 4,969 points, with 4,420 contracts traded.

In New York yesterday, the Dow Jones Industrial Average fell 0.94 per cent to 14,618.59 points, while the broad-based S&P500 slid 1.43 per cent to 1,552.01.

Meanwhile, the tech-heavy Nasdaq Composite Index ended down 1.84 per cent at 3,204.67.

Futures contract prices for key commodities such as oil, gold and copper all settled lower in offshore trading.

In economics news on Thursday, the NAB business survey for the March quarter will be released.

Also, the Australian government will auction $1 billion of Treasury Notes.

In companies news, quarterly production reports from Fortescue Metals Group, Woodside Petroleum and Iluka are due for release.

Bank of Queensland and Australian Pharmaceutical Industries publish their interim results, while Wesfarmers will release third quarter retail sales figures.

Today, the benchmark S&P/ASX200 index rose 1.09 per cent to 5004.6 points, while the broader All Ordinaries finished 1.00 per cent higher at 4,993.6 points.

View the original article here

Australian market set to open lower

THE Australian stock market looks set to open weaker after a negative finish on overseas markets.

At 0707 AEST today, the June share price index futures contract was 63 points lower at 4,898 points, with 4,654 contracts traded.

In New York tody, the Dow Jones Industrial Average tumbled 1.79 per cent to 14,599.20 points, while the broad-based S&P500 slid 2.30 per cent to 1,552.36.

Meanwhile, the tech-heavy Nasdaq Composite Index sank 2.38 per cent to 3,216.49.

In economics news today, the Reserve Bank of Australia will release the minutes of its April board meeting.

In companies news, miner Rio Tinto will release its first quarter operations review.

View the original article here

Shares open lower

The Dow Jones index hit a new record high helped by a strong start to the earnings season.

THE Australian share market has opened flat despite a lift in overseas markets overnight.

Early trading was marked by a massive 30 per cent drop in the shares of troubled surfwear retailer Billabong.

Billabong said after the market had closed yesterday that a consortium headed by its US-based executive Paul Naude was proposing to acquire all of Billabong's shares at 60 cents per share - a significantly lower price than the $1.10 proposed in a previous offer.

At 10.14am AEST, Billabong was 19.5 cents, or 26.71 per cent, lower at 53.5 cents.

CMC Markets chief market strategist Michael McCarthy said the local market had opened fairly calmly, with resources stocks lifting and the major banks falling.

"It looks like developments over the last week are now causing investors to move into that rotation (from banks to resources)," he said.

Mr McCarthy said resources stocks were lifting on the back of improved commodity prices, which benefited from better-than-expected inflation data out of China and moves by Japan to stimulate its economy. Global miner BHP Billiton was 97 cents higher at $34.08, and Rio Tinto surged $1.79 to $58.52.

Among the major banks, Westpac dipped 25 cents to $31.05, ANZ fell 26 cents to $28.22, Commonwealth Bank retreated 58 cents to $67.38, and National Australia Bank sagged 25 cents to $31.16.

On Wall Street overnight, the Dow Jones Industrial Average shook off early weakness and pressed through to another record close, led by strong gains in tech shares Microsoft and Intel. The Dow rose 59.98 points, or 0.41 per cent, to 14,673.46 points.

KEY FACTS

* At 10.26am AEST today, the benchmark S&P/ASX200 index was down 6.4 points, or 0.13 per cent, at 4970.4 points.

* The broader All Ordinaries index was down 4.8 points, or 0.1 per cent, at 4975.4 points.

* The June share price index futures contract was one point higher at 4970 points, with 10,834 contracts traded.

* National turnover was 264.2 million securities worth $529.1 million.

View the original article here

Australian stocks set to open lower

US joba data took its toll on markets.

AUSTRALIAN shares have opened slightly higher, buoyed by resource stocks.

IG Markets Stan Shamu said resource stocks were benefiting from a rise in commodity prices following disappointing US employment data, which had pushed the US dollar lower.

"The recovery in resources on the back of a weaker US dollar following weaker non farm pay roll figures and has inspired the Australian market to get off to a strong start to the week," he said.

BHP Billiton added 43 cents to $32.67 and Fortescue Metals added five cents to $3.62.

However Rio Tinto fell 19 cents to $55.41.

Gold stocks were also performing strongly at the open.

Newcrest surged 40 cents to $19.20, while Oz Minerals was up fives cents to $4.80 and Pan Australian Resources gained fives cents to $2.34.

The four major banks were mixed, with ANZ up five cents to $27.80 and Westpac eight cents higher at $30.33.

But Commonwealth Bank fell 53 cents to $66.40 and National Australia Bank lost nine cents to $30.48.

US stocks pared back sharp losses on Friday as traders digested a surprisingly weak March labour report and watched rising global tensions with North Korea.

The Dow Jones Industrial Average dropped 40.86 points (0.28 per cent) to close at 14,565.25.

In Europe on Friday, London's FTSE 100 index of leading companies closed 1.49 per cent lower to 6,249.78 points and Frankfurt's DAX 30 slumped 2.03 per cent to 7,658.75 points.
 

View the original article here

Australian stocks set to open lower

US joba data took its toll on markets.

AUSTRALIAN shares have opened slightly higher, buoyed by resource stocks.

IG Markets Stan Shamu said resource stocks were benefiting from a rise in commodity prices following disappointing US employment data, which had pushed the US dollar lower.

"The recovery in resources on the back of a weaker US dollar following weaker non farm pay roll figures and has inspired the Australian market to get off to a strong start to the week," he said.

BHP Billiton added 43 cents to $32.67 and Fortescue Metals added five cents to $3.62.

However Rio Tinto fell 19 cents to $55.41.

Gold stocks were also performing strongly at the open.

Newcrest surged 40 cents to $19.20, while Oz Minerals was up fives cents to $4.80 and Pan Australian Resources gained fives cents to $2.34.

The four major banks were mixed, with ANZ up five cents to $27.80 and Westpac eight cents higher at $30.33.

But Commonwealth Bank fell 53 cents to $66.40 and National Australia Bank lost nine cents to $30.48.

US stocks pared back sharp losses on Friday as traders digested a surprisingly weak March labour report and watched rising global tensions with North Korea.

The Dow Jones Industrial Average dropped 40.86 points (0.28 per cent) to close at 14,565.25.

In Europe on Friday, London's FTSE 100 index of leading companies closed 1.49 per cent lower to 6,249.78 points and Frankfurt's DAX 30 slumped 2.03 per cent to 7,658.75 points.
 

View the original article here

Australian dollar opens lower

THE Australian dollar has opened lower, dropping below 104 US cents in response to a disappointing US jobs report.

At 0700 AEST today, the Australian dollar is at 103.68 US cents, down from Friday's local close of 104.15 US cents.

The Australian dollar fell against both the US dollar and the euro in New York trading, after figures showed the US economy added 88,000 jobs in March.

The result was well below market expectations of a 190,000 improvement and the slowest monthly gain in nine months.

"After the non-farm payrolls the Australian dollar came immediately under pressure, going down to its lows," HiFX senior trader Stuart Ive said.

"If you look at the Australian dollar against a euro/US dollar chart at the moment, you will see that the euro flew higher after the non-farm payrolls and the Australian dollar got sold off."

At 0700 AEST, the Australian dollar was at 79.92 euro cents, down 0.8 per cent from Friday's local close of 80.59 euro cents.

Some technical trading had also led to Australian dollar weakness against the US dollar and euro, Mr Ive said.

However, the massive stimulus plan announced by the Bank of Japan last week continued to push the Australian dollar to fresh highs against the Japanese yen and levels last reached in the 1990s.

At 0700 AEST, the Australian dollar was at 101.83 yen, up 1.5 per cent from 100.35 yen previously.

In economics news on Monday, the Australian Industry Group-Housing Industry Association performance of construction index for March is due for release.

The ANZ job advertisements series for the same month will also be published.
 

View the original article here

Australian dollar opens lower

THE Australian dollar has opened lower, dropping below 104 US cents in response to a disappointing US jobs report.

At 0700 AEST today, the Australian dollar is at 103.68 US cents, down from Friday's local close of 104.15 US cents.

The Australian dollar fell against both the US dollar and the euro in New York trading, after figures showed the US economy added 88,000 jobs in March.

The result was well below market expectations of a 190,000 improvement and the slowest monthly gain in nine months.

"After the non-farm payrolls the Australian dollar came immediately under pressure, going down to its lows," HiFX senior trader Stuart Ive said.

"If you look at the Australian dollar against a euro/US dollar chart at the moment, you will see that the euro flew higher after the non-farm payrolls and the Australian dollar got sold off."

At 0700 AEST, the Australian dollar was at 79.92 euro cents, down 0.8 per cent from Friday's local close of 80.59 euro cents.

Some technical trading had also led to Australian dollar weakness against the US dollar and euro, Mr Ive said.

However, the massive stimulus plan announced by the Bank of Japan last week continued to push the Australian dollar to fresh highs against the Japanese yen and levels last reached in the 1990s.

At 0700 AEST, the Australian dollar was at 101.83 yen, up 1.5 per cent from 100.35 yen previously.

In economics news on Monday, the Australian Industry Group-Housing Industry Association performance of construction index for March is due for release.

The ANZ job advertisements series for the same month will also be published.
 

View the original article here

Dollar lower at noon

THE Australian dollar was lower at noon as investors snapped up the US dollar after the Bank of Japan flagged greater support for the Japanese economy.

The BoJ's announcement of a boost to its purchases of Japanese government bonds led to a sharp fall in the yen against all the major currencies.

The Australian dollar rose about 1.5 per cent against the yen today from yesterday's local close.

"The yen has weakened considerably against the Aussie and the US dollar," Rochford Capital senior consultant Derek Mumford said. "But the Aussie has weakened against the US, euro and a little bit against the sterling as well so there are some quite strange moves going on."

At 12pm AEDT today, the currency was at 104.17 US cents, down from yesterday's local close of 104.41 US cents.

During the morning, the local currency moved in a tight range between 104.44 US cents and 104.12 US cents.

Mr Mumford said he expected the Australian dollar to trade close to current levels ahead of the release of US jobs figures for March, due out later today.

"The market is looking towards the US non-farm payrolls tonight, which is always a big number," he said.

Market expectations were for the world's largest economy to have added 190,000 jobs in March, with the unemployment rate tipped to come in unchanged from February at 7.7 per cent.

Meanwhile, the Australian bond market was firmer at noon. At 12pm AEDT today, the June 10-year bond futures contract was trading at 96.695 (implying a yield of 3.305 per cent), up from yesterday's close of 96.590 (3.41 per cent). The June three-year bond futures contract was at 97.180 (2.82 per cent), up from 97.120 (2.88 per cent) previously.

View the original article here

Share market trading lower

THE Australian share market is trading lower in the wake of weaker offshore markets overnight.

But better-than-expected figures on retail spending in Australia may provide some impetus for the local market to improve later in the session. Official figures showed that Australian retail spending rose 1.3 per cent in February to a seasonally adjusted $21.95 billion. Economists had been forecasting a rise of 0.3 per cent for February.

IG Markets market strategist Evan Lucas said the local bourse had followed US markets down after weak US economic data gave investors a reason to take profits. Lower commodity prices were also weighing on the mining sector.

"The miners are dragging everything down today," he said. "All in all, it's a fairly poor day."

Mr Lucas said building approval and retail sales figures were ahead of expectations and may provide an impetus for the market to pick up in the afternoon.

On the local market at 12.01pm AEDT in the resources sector, global miner BHP Billiton was 46 cents lower at $31.77, and Rio Tinto surrendered 57 cents to $54.81.

Among the major banks, National Australia Bank was eight cents weaker at $31.03, Commonwealth Bank gained 42 cents to $68.87, Westpac dipped six cents to $31.09, and ANZ gave away eight cents at $28.19.

Among other stocks, Fairfax Media shed 1.75 cents to 60.25 cents after announcing a reorganisation of its operations into five business arms as part of its ongoing restructure program.

Troubled retailer Billabong asked for an indefinite suspension of its shares, which last traded at 73 cents, while it continued takeover talks with two potential suitors.

KEY FACTS

* At 1205pm AEDT today, the benchmark S&P/ASX200 index was down 22.5 points, or 0.45 per cent at 4935.2 points.

* The broader All Ordinaries index was down 26.2 points, or 0.53 per cent, at 4940.2 points.

* The June share price index futures contract was down 21 points at 4933 points, with 13,352 contracts traded. ational turnover was 768.2 million securities worth $1.51 billion. 

View the original article here

Market closes lower on mixed data

World markets receive boost from factory orders.

THE share market closed about 0.6 per cent lower amid mixed economic data.

Official figures released today show Australia's trade deficit narrowed to $178 million in February, coming in under economists' forecasts of $1 billion.

But new home sales tumbled 5.3 per cent in February, snapping a four-month run of increases.

Lonsec senior client adviser Michael Heffernan said the Australian market had ignored positive leads from US and European markets but there was no particular factor dragging down the local bourse.

"You can't attribute it (the fall) to what's been going on offshore, so it looks like there's something that's domestically impacting the market,'' he said.

"But there's nothing particularly obvious.

"Perhaps it's the overhang from the Reserve Bank (of Australia) not cutting interest rates yesterday (on Tuesday).''

Mr Heffernan said the resources sector had performed poorly, pulled back by lower commodity prices.

In the resources sector, global miner BHP Billiton fell 49c to $32.23 and Rio Tinto reversed $1.12 to $55.38.

Oil and gas producer Woodside Petroleum was off 23c at $35.77.

West Australian Premier Colin Barnett said any delays by Woodside and its partners on a final investment decision on the $40-billion Browse gas project could set the project back many years.

Coal seam gas miner Metgasco dipped 0.6c to a record low at 6c after it said it had been asked to consider gas projects outside NSW.

Among the main banks, ANZ backtracked 55c to $28.27 after it announced its head of international and institutional banking Alex Thursby resigned to take a job in the Middle East.

National Australia Bank jumped 16c to $31.11, Westpac climbed 13c to $31.15 and Commonwealth Bank sagged 50c to $68.45.

View the original article here

Share market trading lower

THE Australian share market is trading lower in the wake of weaker offshore markets overnight.

But better-than-expected figures on retail spending in Australia may provide some impetus for the local market to improve later in the session. Official figures showed that Australian retail spending rose 1.3 per cent in February to a seasonally adjusted $21.95 billion. Economists had been forecasting a rise of 0.3 per cent for February.

IG Markets market strategist Evan Lucas said the local bourse had followed US markets down after weak US economic data gave investors a reason to take profits. Lower commodity prices were also weighing on the mining sector.

"The miners are dragging everything down today," he said. "All in all, it's a fairly poor day."

Mr Lucas said building approval and retail sales figures were ahead of expectations and may provide an impetus for the market to pick up in the afternoon.

On the local market at 12.01pm AEDT in the resources sector, global miner BHP Billiton was 46 cents lower at $31.77, and Rio Tinto surrendered 57 cents to $54.81.

Among the major banks, National Australia Bank was eight cents weaker at $31.03, Commonwealth Bank gained 42 cents to $68.87, Westpac dipped six cents to $31.09, and ANZ gave away eight cents at $28.19.

Among other stocks, Fairfax Media shed 1.75 cents to 60.25 cents after announcing a reorganisation of its operations into five business arms as part of its ongoing restructure program.

Troubled retailer Billabong asked for an indefinite suspension of its shares, which last traded at 73 cents, while it continued takeover talks with two potential suitors.

KEY FACTS

* At 1205pm AEDT today, the benchmark S&P/ASX200 index was down 22.5 points, or 0.45 per cent at 4935.2 points.

* The broader All Ordinaries index was down 26.2 points, or 0.53 per cent, at 4940.2 points.

* The June share price index futures contract was down 21 points at 4933 points, with 13,352 contracts traded. ational turnover was 768.2 million securities worth $1.51 billion. 

View the original article here