Congress impasse leaves Australia at sea
Several factors were pulling the Australian market in different directions, but the main influence had been developments in the US, Invast Securities senior technical strategist Vito Henjoto said.
"We've had the US government shutting down today. The whole financial market is looking into it," he said.
"The Australian market is largely clueless [on which direction to take].
"A lot of Australian traders are going to be looking at what happens with the Dow Jones tonight."
The White House budget office on Tuesday directed federal agencies to shut down because funding from the US Congress had stopped.
Better than expected Australian retail figures had a positive influence on local shares when they were released late in the morning.
The data showed a 0.4 per cent rise in August.
The benchmark S&P/ASX 200 index dropped 12.1 points, or 0.23 per cent, to 5206.8 points. The broader All Ordinaries index lost 11.4 points, or 0.22 per cent, at 5206.3 points.
In the resources sector, BHP Billiton dropped 25¢ to $35.49 and Rio Tinto fell 67¢ to $61.07.
Among the major banks, ANZ added 6¢ to $30.84, Commonwealth Bank rose 14¢ to $71.35, National Australia Bank found 9¢ to $34.41 and Westpac eased 19¢ to $32.54.
In the retail sector, David Jones gained 4¢ to $2.93, Harvey Norman added 7¢ to $3.25, but Myer reversed 5¢ to $2.56.
Leighton was 21¢ higher at $19.46 after it announced several new contracts for construction work.
The Australian dollar has rallied after the Reserve Bank left the cash rate on hold and gave a more upbeat assessment on the state of the economy. At 5pm on Tuesday, the local unit was trading at US94.20¢, up from 93.08¢ on Monday. The Aussie dollar climbed from US93.39¢ to 94¢ and above following the RBA's announcement that the cash rate would remain at the record low of 2.5 per cent.
The price of gold in Sydney was $US1335.10 per fine ounce, down $US5.65 from Monday's closing price of $US1340.75.
National turnover was 1.65 billion securities worth $3.9 billion.
AAP
Frequently Asked Questions about this Article…
The Australian sharemarket fell after global uncertainty from a partial US government shutdown. Markets were pulled in different directions, but Invast Securities’ senior technical strategist Vito Henjoto said US developments were the main influence. The benchmark S&P/ASX 200 dropped 12.1 points (0.23%) to 5,206.8 points.
The White House budget office directed federal agencies to shut down after Congress stopped funding, creating uncertainty that left many Australian traders unsure of market direction. The article notes Australian investors were closely watching US moves — including the Dow Jones — for cues on overnight sentiment and market direction.
In the resources sector BHP Billiton fell 25¢ to $35.49 and Rio Tinto dropped 67¢ to $61.07, reflecting weakness in the mining sector during the session.
Major banks were mixed: ANZ rose 6¢ to $30.84, Commonwealth Bank gained 14¢ to $71.35, National Australia Bank added 9¢ to $34.41, while Westpac eased 19¢ to $32.54.
Retailers had mixed results: David Jones gained 4¢ to $2.93, Harvey Norman added 7¢ to $3.25, and Myer fell 5¢ to $2.56. Better-than-expected Australian retail figures — a 0.4% rise in August — gave a positive influence on local shares when released.
The RBA left the cash rate on hold at the record low of 2.5% and gave a more upbeat economic assessment. The Aussie dollar rallied, trading at about US94.20¢ at 5pm (up from US93.08¢ on Monday), and climbed from roughly US93.39¢ to 94¢ and above following the announcement.
Gold in Sydney was quoted at US$1,335.10 per fine ounce, down US$5.65 from Monday’s close of US$1,340.75, indicating a modest pullback in the gold price for the day.
National turnover for the day was 1.65 billion securities worth about $3.9 billion, reflecting overall trading activity across the Australian market.
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