Australian stocks let go of 5300
Australian stocks crumbled to the pressure of weak leads offshore. Wednesday’s 80 point advance was all but erased in morning trade.
Previous session’s darlings the big banks lead the sell-off. This week’s bank reporter CBA fell a staggering 2.3%. the bank continues to etch in new recent lows.
Crude’s near 5% slide overnight placed heated downward pressure on energy and material-based stocks. Origin reported on Thursday and slipped over 13% across the trading session as concerns for whether oil may breach $40 settled in.
Reporting season continues to march along and corporates continue to be scrutinized. Wesfarmers was up on the chopping block this morning with traders applauding the Supermarket Giant’s results. Reporting a fall in full year net profit of 9.3%, Wesfarmers served to be a rare green on Thursday’s trading screens.
In afternoon trade, the local index is could not hold onto the 5300-handle and dipped into 5200 zone, after having given up 90 points. The day’s trading volume has been plump with panic selling chalking up healthy turnover. The local currency has remained relatively stable across the trading day, exchanging hands in mid-0.73 ranges. Any movement on the AUD may be dependent on the outcome of US Unemployment Claims due out overnight.
For further comment from CMC Markets please call 02 8221 2135.
Frequently Asked Questions about this Article…
Australian stocks fell below the 5300 mark due to weak leads from offshore markets and significant sell-offs in major sectors like banking and energy. The pressure from a near 5% slide in crude oil prices also contributed to the decline.
The big banks led the sell-off in the recent trading session, with CBA falling a staggering 2.3%. This decline contributed to the overall drop in the Australian stock market.
The near 5% slide in crude oil prices placed significant downward pressure on energy and material-based stocks, leading to a notable decline in the Australian stock market.
Origin Energy's stock slipped over 13% during the trading session following their report, as concerns grew about whether oil prices might breach the $40 mark.
Despite reporting a fall in full-year net profit of 9.3%, Wesfarmers was one of the few stocks that saw positive movement, with traders applauding the Supermarket Giant’s results.
The Australian dollar remained relatively stable, trading in the mid-0.73 ranges. Its movement may be influenced by the outcome of US Unemployment Claims due out overnight.
The trading volume has been notably high, driven by panic selling, which indicates a healthy turnover despite the market's decline.
For further commentary on the current market situation, you can contact CMC Markets at 02 8221 2135.
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