Close Australian stocks took another hit today as European policymakers' fumbling attempts to solve a crippling sovereign debt crisis hit sentiment.
At the close, the benchmark S&P/ASX200 index was down 67.9 points, or 1.6 per cent, at 4081.5, while the broader All Ordinaries index fell 65.8 points, or 1.6 per cent, to 4164.1.
Most sectors ended in the red, with energy down 2.6 per cent, financials off 1.9 per cent and materials losing 1.6 per cent. Even safe-haven gold stocks only managed to eke out a 0.1 per cent gain.
need2know:
- The dollar drops below $US1.03
- European shares fall at the open
- Asian stocks fall on world growth concerns
- WTI crude oil dips to $US87 a barrel
- Spot gold rises to $US1807 an ounce
- Dow futures slide 162 points to 11,284
Stocks were down across the board, with the big banks hardest hit on concerns a European debt crisis will raise the cost of funds for the deposit deficient sector.
"The fact that Wall Street futures were down is hurting sentiment. There is trepidation ahead of the two-day US Fed meeting and investors seem to be clearing out positions," Juliette Saly, market analyst at Commonwealth Securities said.
Speculation is mounting that the Fed will take steps to lengthen the maturity of its debt holdings at a two-day meeting ending on Wednesday, forcing down longer-term US interest rates.
S&P 500 stock index futures fell 1.8 per cent, pointing to pullback on Wall Street after five days in the black last week.
Energy leads losses
Broad-based losses were across all sectors, with about eight out of every 10 stocks falling. The energy sector took the brunt of the downwards trend, falling 2.6 per cent on the back of weaker offshore commodity prices.
Woodside Petroleum closed down 85 cents, or 2.48 per cent, at $33.40 and Santos ended the day 20 cents, or 1.75 per cent, weaker at $11.25.
Financial stocks were hit also, tainted by investor uncertainty about local banks’ exposure to euro-zone debt risk.
All four major retail bank stocks fell, with Commonwealth Bank down 63 cents at $44.95, Westpac 41 cents lower at $19.51. ANZ slipped 39 cents to $19.41 and National Australia Bank lost 42 cents to $22.44.
Gold miner Newcrest bucked the trend and headed 0.2 per cent higher on the back of stronger gold prices as investors sought a safe haven in bullion.
Cochlear rose 5.7 per cent to $54.1 as investors felt the falls over the last five sessions were overdone.
Macarthur Coal eased 0.3 per cent to $15.95 after Peabody Energy and ArcelorMittal extended their $US5.2 billion takeover bid for the coal miner until October 14.
Ports and rail group Asciano fell 2.5 per cent to $1.55. The Australian Financial Review said the company was holding talks with coal miners in the Galilee Basin over potentially developing infrastructure in the area.
Brewer Foster's fell 1 per cent to $4.91 in morning trade, with suitor SABMiller expected to release details of its $10 billion takeover bid for the company in the next two weeks.
The worst performing stock of the top 100 companies on the ASX was surfwear company Billabong, which dived 7.6 per cent, or 25 cents, to $3.03, after going ex-dividend.
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Reuters, AAP, with BusinessDay