Trade Resources Economy Australian Shares Fall as Investors Nervously Wait for an Update on Economic Stimulus

Australian Shares Fall as Investors Nervously Wait for an Update on Economic Stimulus

Australian shares have fallen as investors nervously wait for an update on economic stimulus measures in the US.

The benchmark S&P/ASX200 index was down 11.5 points, or 0.24 per cent, at 4814.4.

The broader All Ordinaries index was down 10.4 points, or 0.22 per cent, at 4794.6.

The market fell by almost 1 per cent during the day, in line with falls on other Asian markets and after the minutes from the latest Reserve Bank of Australia board meeting provided no new insight.

But the release of data showing strong rises in Chinese property prices helped the market recover some of its losses during afternoon trade.

IG chief market strategist Chris Weston said investors are sensitive ahead of the US Federal Reserve's policy board meeting being held tomorrow.

US Fed chairman Ben Bernanke is tipped to provide direction on whether policymakers will continue with a monthly $US85 billion bond buying program, known as quantitative easing.

"Thursday is now shaping up to be very significant for the markets," he said.

"Thursday - the day after the Fed meeting - should restore clarity to the investment and trading community."

On the market, bank and mining stocks were the worst performing sectors in the middle of the day, but they recovered most of their losses leading into the close.

ANZ fell 7c to $28.38, Westpac fell 2c to $29.45, Commonwealth Bank rose 2c to $68.49 and National Australia Bank fell 18c to $29.74.

In the resources sector, Rio Tinto fell 10c to $53.55 and BHP Billiton fell 11c to $32.80.

Retail stocks were a key area of weakness.

David Jones fell 3c to $2.39, Myer fell 3c to $2.27, Wesfarmers fell 18c to $38.46 and Woolworths fell 33c to $32.03.

Elders was the worst-performing stock on the market, after it rejected an offer from Ruralco to buy its rural services business.

Elders shares fell 2c, or 22.2 per cent, to 7c.

At 4.41pm AEST, the June share price index futures contract was nine points lower at 4820, with 196,476 contracts traded.

National turnover was 1.54 billion securities worth $4.9 billion.

Source: http://www.theaustralian.com.au/business/markets/stocks-fall-on-investor-caution/story-e6frg916-1226665814283
Contribute Copyright Policy
Stocks Fall on Investor Caution
Topics: Service