As the leadership tension reached a boiling point in Canberra, Australian Shares finished down, with investors scared off by the political uncertainty and the threat of an early election.
A leadership ballet was set for 4.30pm this afternoon, announced just in time to see earlier gains knocked off, with the ASX 200 finishing down at 4960.40.
IG Markets strategist Stan Shamu said the market suffered “jitters” as the news filtered out of the nation’s capital.
“That’s why we can’t see the impact of gains out of Asia,” he said.
While much is still unknown, and the worst-case scenario of an early election is not the most likely outcome, Shamu said today’s news still adds political uncertainty to markets.
“Miners are still doing well though, and some investors might think that this could be a positive environment for them to play in,” he said.
But CommSec market analyst Tom Piotrowski said that linking market movements directly with the leadership news was “a long bow to draw.”
He also said: “volumes are good. Even though there has been a return of fears over Europe and Cyprus, volumes are still strong, there was around 5.7 billion shares traded today.”
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