Sea of Red as Financial Come Under Pressure

The Australian share market sold off after the open, driven by selling in financial and discretionary stocks. ANZ traded down 2 percent while NAB and WBC are hitting lows not seen since January this year. The sector has come under a pressure lately as policy reform and an overheating property market are posing a risk on the outlook on the sector.

By CMC Markets · 18 May 2015

By CMC Markets ·
18 May 2015

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The BHP spin off South 32 has come on softer than expected. It is in line with the overall tone of the market today, which is down 1% with selling across all sectors. The property sector has remained in the black although only marginally.

One of the few green spots on the market today is Elders, which after handing down its half year results, has pushed up over 4%.

Tomorrow will see the Reserve Bank deliver minutes from the last meeting where they reduced the cash rate by 25 basis points. Currency traders will be hanging on every sentence as the last rate cut resulted in a surprising appreciation of the AUD. PMI numbers out of China on Thursday and US on Friday will be other points of interest to traders.

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Frequently Asked Questions about this Article…

Why did the Australian share market experience a sell-off?

The Australian share market experienced a sell-off due to significant selling in financial and discretionary stocks. Companies like ANZ, NAB, and WBC saw declines, driven by concerns over policy reform and an overheating property market.

How did ANZ, NAB, and WBC perform in the market?

ANZ traded down by 2 percent, while NAB and WBC hit lows not seen since January this year. These declines contributed to the overall pressure on the financial sector.

What is the impact of policy reform and the property market on financial stocks?

Policy reform and an overheating property market are posing risks to the financial sector's outlook, leading to pressure and declines in stocks like ANZ, NAB, and WBC.

How did South 32 perform after its spin-off from BHP?

South 32 came on softer than expected, aligning with the overall market tone, which was down by 1% with selling across all sectors.

Which company showed positive performance in the market?

Elders was one of the few companies showing positive performance, with its stock rising over 4% after releasing its half-year results.

What upcoming events should investors watch for market impact?

Investors should watch for the Reserve Bank's minutes from the last meeting, where they reduced the cash rate by 25 basis points. Additionally, PMI numbers from China on Thursday and the US on Friday will be key points of interest.

How did the property sector perform in the market?

The property sector remained in the black, although only marginally, amidst the overall market downturn.

Why are currency traders interested in the Reserve Bank's minutes?

Currency traders are keenly interested in the Reserve Bank's minutes because the last rate cut led to a surprising appreciation of the Australian dollar, and they are looking for insights into future monetary policy directions.