The Australian market followed global markets down to dip for the second session in a row.
Here’s the scoreboard:
- S&P ASX 200: 5,901.60 -32.30 (-0.54%)
- All Ordinaries: 5,871.50 -31.37 (-0.53%)
- AUD/USD: 0.7814 -0.0002 (-0.03%)
Wall Street was weaker overnight with the S&P 500 closing down -0.5%.
On the local market, 6 out of 10 sectors ended weaker. The major banks and miners all closed down, led by the Commonwealth Bank which lost 0.87% to $91.12. Rio Tinto, trading ex-dividend, was 3.6% down to close at $62.45.
The top stories on Wednesday:
1. An unexplained sharp rise. ASIC is investigating suspicious trading in the Australian dollar just before the RBA’s interest rate announcement
2. Share frenzy. Biotech Novogen announces one of its drugs is found to work against brain cancer. The shares jump by half and closed up more than 38% to $0.18.
3. Flying high. Macquarie Group announced a huge expansion of its aircraft leasing business, buying a portfolio of 90 jets in a deal worth more than $5 billion. Macquarie’s shares were down more than 2% to $73.52.
4. GDP is 2.5%. It’s slightly below the 0.6%/0.7% range expected by the market. While it’s not a terrible result, it does reflect continuing weakness in the economy.