THE Australian sharemarket has closed modestly lower, after climbing back from the day's lows, with investors remaining cautious after weak global growth forecasts from the International Monetary Fund.
The benchmark S&P/ASX200 slipped 14.6 points, or 0.2 per cent, to 4490.7, while the broader All Ordinaries lost 14.7 points, or 0.3 per cent, to 4511.9.
Among the sectors, financials dropped 0.4 per cent, materials lost 0.3 per cent - clawing back some of their earlier losses - while energy and health stocks gained 0.4 per cent and 0.7 per cent, respectively.
Poor leads from overseas did not help the local market, the head of research sales at Deutsche Bank, Glenn Morgan, said.
"There was a little bit of trepidation globally as we head into three key events: first, the US reporting season - we had the first bit of that overnight which is relevant to us, in Alcoa second, when Spain is going to ask for a bailout and third, whether Greece is going to get its next aid instalment," Mr Morgan said.
"Slightly long-term there are the US fiscal cliff issues, which are really on the horizon for us."
Iron ore prices rose above $US117 a tonne overnight, as miner Rio Tinto added 0.2 per cent, while rival BHP traded relatively flat, at $33.48.
Fortescue Metals failed to cash in on the lift in iron ore, falling 2.8 per cent, to $3.84.
Mr Morgan said that while the iron ore price seemed to have found some support, investors were more likely to opt for the security of the bigger miners.
"The US reporting season is going to drive things more than anything else, including the big financials that report in the next few days," Mr Morgan said.
Overnight in the US, Alcoa, which is part of a global joint venture with ASX-listed Alumina, reported a $US143 million third-quarter loss.
When Australian markets opened, investors were unsure how to react, with Alumina falling as much as 2.9 per cent before rallying to finish up 2.3 per cent, at 90?.
The big four banks posted losses: ANZ dropped 0.2 per cent to $25.56, CBA fell 0.1 per cent to $56.65, NAB lost 0.4 per cent to $26.20 and Westpac slipped 0.7 per cent to $25.72.
Wesfarmers lost 0.7 per cent, to $34.52, while rival Woolworths lost 0.3 per cent, to $29.40.
Transurban dropped 9? to $6.10 as it said its share of revenue from its portfolio of toll roads rose 2.5 per cent in the September quarter, driven partly by an increase in tolls on some roads.
The Australian dollar rebounded yesterday after an initial sell-off, trading around $US1.0225, as demand for Australian bonds pushed the currency higher.
Frequently Asked Questions about this Article…
Why did the Australian sharemarket close modestly lower today?
The market slipped as investors stayed cautious after weak global growth forecasts from the IMF and poor leads from overseas. Deutsche Bank's head of research sales, Glenn Morgan, said uncertainty around the US reporting season (starting with Alcoa), potential bailouts in Spain and Greece, and the US fiscal cliff weighed on sentiment.
How did the S&P/ASX 200 and the All Ordinaries finish?
The benchmark S&P/ASX 200 fell 14.6 points (0.2%) to 4490.7, while the broader All Ordinaries dropped 14.7 points (0.3%) to 4511.9.
Which sectors moved the most on the day and what were the sector changes?
Financials were down about 0.4%, materials lost roughly 0.3% (after clawing back some earlier losses), while energy and health stocks gained about 0.4% and 0.7% respectively.
What happened to iron ore prices and major miners like Rio Tinto, BHP and Fortescue?
Iron ore rose above US$117 a tonne overnight. Rio Tinto gained about 0.2%, BHP traded relatively flat at $33.48, while Fortescue Metals fell 2.8% to $3.84 despite the lift in the iron ore price. Analysts said investors tended to favour the security of larger miners.
How did Alcoa's results affect Alumina and related stocks?
Alcoa reported a US$143 million third‑quarter loss, which unsettled markets. Alumina initially fell as much as 2.9% when Australian markets opened but then rallied to finish up 2.3%.
How did the 'big four' Australian banks perform on the day?
The major banks all posted small losses: ANZ slipped 0.2% to $25.56, Commonwealth Bank (CBA) fell 0.1% to $56.65, NAB lost 0.4% to $26.20, and Westpac eased 0.7% to $25.72.
Why did Transurban shares fall and what did the company report about toll revenue?
Transurban dropped to $6.10 after the company said its share of revenue from its toll‑road portfolio rose 2.5% in the September quarter, driven partly by toll increases on some roads—news that apparently disappointed some investors.
What happened to the Australian dollar and what was driving the currency move?
The Australian dollar rebounded after an initial sell‑off, trading around US$1.0225. The lift was attributed to demand for Australian bonds, which pushed the currency higher.
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