Positive Australian consumer data and better than expected housing figures have failed to stop the local share market from closing sharply lower.
Australian shares slid more than one per cent during early afternoon trade after US and European markets suffered steep falls overnight.
While weak Chinese inflation data out on Tuesday added to concern about the world’s second largest economy’s slowing growth, upbeat local data helped Australian shares recover some ground, IG market analyst Angus Nicholson said.
“The weekly consumer confidence index was strong and the housing lending figures for September were better than expected,” Mr Nicholson said.
“This partly offset the weak Chinese CPI data.”
The ANZ/Roy Morgan weekly consumer confidence index rose to its highest level in nearly two years, and its measure of confidence about the economy was at its highest since Malcolm Turnbull became prime minister eight weeks ago.
The number of home loans approved in September rose 2.0 per cent, which beat market expectations of a flat result, official figures showed.
Among the banks, Commonwealth Bank fell 82 cents to $74.76, Westpac shed 39 cents to $30.90, National Australia Bank declined 11 cents to $27.97, and ANZ gained 18 cents to $25.54.
The major miners were higher, with BHP Billiton up 15 cents at $21.57, Rio Tinto added 39 cents to $49.39, and Fortescue Metals cents firmed 10 cents to $2.30.
Ports and rail operator Asciano gained 26 cents to $8.99 after receiving a formal takeover bid from a consortium led by logistics firm Qube Holdings.
Qube closed eights lower at $2.18.
Explosives and fertiliser maker Incitec Pivot dropped six cents to $3.73 after it warned low commodities prices and subdued demand would affect the explosives market in the months ahead.
KEY FACTS
* At 1615 AEDT on Tuesday, the benchmark S&P/ASX200 index was down 20.3 points, or 0.40 per cent, at 5,099.2 points.
* The broader All Ordinaries index was down 22.6 points, or 0.44 per cent, at 5,157.7 points.
* The December share price index futures contract was down 41 points at 5,076 points, with 39,460 contracts traded.
* National turnover was 2.8 billion securities worth $6.7 billion.
