The Australian share market is weaker as investors take profits in the wake of the lack of detail about US President-elect Donald Trump’s plans to stimulate the US economy.
IG market strategist Evan Lucas said the local bourse on Friday mirrored the moves of the US market overnight, with financial stocks dragging the main indices lower.
“You can’t have the banks weighing so heavily today and not see our market down,” Mr Lucas said.
“You are seeing that financials in the US were down. We are following suit.”
Mr Lucas said investors were waiting for Mr Trump to be inaugurated and for company earnings season to begin. Until then, they appear to be following the US.
Mr Lucas said some market observers were blaming the pullback in US financial stocks on Mr Trump’s press conference this week, when he offered no new information about his economic plans.
Among the major banks on the Australian market, Commonwealth Bank was down $1.17 at $83.86, National Australia Bank fell 42 cents to $31.10, Westpac lost 53 cents at $32.90, and ANZ dropped 57 cents to $30.67.
In the resources sector, global miner BHP Billiton eased three cents to $26.33, Rio Tinto retreated 78 cents to $62.09, and Fortescue Metals surrendered 14 cents to $6.16.
Despite a lift in oil prices, Woodside Petroleum was off eight cents at $31.93, and Santos sagged four cents to $4.19.
Meanwhile, the Australian dollar was at 74.82 US cents at 1700 AEDT, after breaching 75 US cents earlier in the day, as the US dollar weakened.
ON THE ASX:
* On Friday, the benchmark S&P/ASX200 was down 45.8 points, or 0.79 per cent, at 5,721.1 points
* The broader All Ordinaries index was down 44.8 points, or 0.77 per cent, at 5,776.8 points
* The March SPI200 futures contract was down 39 points at 5, 689 points, with 29,992 contracts traded.
* National turnover was 2.974 billion securities traded worth $5.613 billion.
CURRENCY SNAPSHOT AT 1700 AEDT:
One Australian dollar buys:
* 74.82 US cents, from 74.69 US cents on Thursday
* 86.02 Japanese yen, from 85.46 yen
* 70.47 euro cents, from 70.40 euro cents
* 61.54 British pence, from 61.15 pence
* 105.30 New Zealand cents, from 105.48 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEDT was $US1,1193.80 per fine ounce, down $US4.70 from $US1,198.50 on Thursday.
BOND SNAPSHOT AT 1630 AEDT:
* CGS 5.25 per cent March 2019, 1.8534pct, up from 1.821pct on Thursday.
* CGS 4.25pct April 2026, 2.6316pct, from 2.608pct.
Sydney Futures Exchange prices:
* March 2017 10-year bond futures contract at 97.275 (implying a yield of 2.725pct), down from 97.300 (2.700pct) on Thursday.
* March 2017 3-year bond futures contract at 98.00 (2.00pct), down from 98.040 (1.960pct).
(*Currency closes taken at 1700 AEDT previous local session, bond market closes taken at 1630 AEDT previous local session)
SOURCE: IRESS
