By RTT News, September 22, 2013, 09:58:00 PM EDT
(RTTNews.com) - The Australian stock market is trading notably lower on Monday with investors pressing sales, tracking cues from Wall Street where stocks ended weak on Friday amid renewed concerns about the outlook for the Federal Reserve's monetary stimulus program.
Energy, mining, consumer staples and industrial stocks are mostly trading notably lower. Bank stocks are also trading weak, while healthcare stocks are trading mixed.
The benchmark S&P/ASX 200 index, which declined to 5,227.4, is currently trading at 5,237.9, down 38.8 points or 0.7 percent from its previous close. The broader All Ordinaries index is down 39.7 points or 0.8 percent at 5,231.1, around 10 points off the day's low of 5,221.3.
Among bank stocks, ANZ Bank, Commonwealth Bank of Australia, National Australia Bank and Westpac (WBK) are down marginally. Bendigo & Adelaide Bank and Bank of Queensland are also trading lower.
Top miners BHP Billiton (BHP) and Rio Tinto (RIO) are down 1.6 percent and 1.5 percent, respectively. Newcrest Mining is trading lower by about 6.3 percent and Fortescue Metals is down with a loss of 1.4 percent.
In the energy sector, Woodside Petroleum, Santos, Oil Search and Origin Energy are down 0.8 to 1.2 percent, while Caltex Australia is trading lower by about 2 percent.
Regis Resources, PanAust, Sims Metal Management, Investa Office Fund and Oz Minerals are down 2 to 3.5 percent. Downer EDI is down nearly 2 percent. Bluescope Steel, Sydney Airport, Metcash, Aurora Oil & Gas and Boral are also trading sharply lower.
Treasury Wine Estates shares are down more than 6 percent on the back of reports that chief executive David Dearie is leaving the company with immediate effect.
In the currency market, the Australian dollar opened lower against the U.S. dollar. In early trades, the local unit was quoting at US$0.9369, down 0.8 percent from Friday's close of US$0.9450.
Among other markets in the Asia-Pacific region, Malaysia, New Zealand and Singapore are trading notably lower, while South Korea and Taiwan are trading in positive territory. The Japanese market is closed for a holiday for Autumnal Equinox.
On Wall Street, stocks moved lower on Friday, as traders cashed in on some of the recent gains. Renewed concerns about the outlook for the Federal Reserve's stimulus program and worries about a potential government shutdown weighed on the markets.
The major averages ended the session near their worst levels of the day. The Dow tumbled 185.5 points or 1.2 percent to 15,451.1, the Nasdaq declined 14.7 points or 0.4 percent to 3,774.7 and the S&P 500 slid 12.4 points or 0.7 percent to 1,709.9.
Major European markets too closed weak on Friday. The U.K.'s FTSE 100 index ended down 0.4 percent, while the German DAX index and the French CAC 40 index closed lower by 0.2 percent and 0.1 percent, respectively.
U.S. crude oil plunged to end at a one-month low on Friday, on easing supply concerns with Syria situation improving and some thawing in relations with Iran. Oil prices were also impacted over possibilities the Federal Reserve could scale down its $85 billion bond-buying program after its October meeting.
Crude for October delivery ended down $1.72 or 1.6 percent at $104.67 a barrel on the New York Mercantile Exchange.
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