Australian market started the week with another sell off as investors took profits, following Wall Street down and ignoring further economic stimulus in China.
Here’s the scoreboard:
- S&P ASX 200: 5,833.10 -44.77 (-0.76%)
- All Ordinaries: 5,807.10 -44.44 (-0.76%)
- AUD/USD: 0.7823 +0.0036 (+0.46%)
In the US, the S&P 500 index fell 1.1% on Friday.
On the local market nine out of ten sectors closed weaker and the market added to the 1.17% loss from Friday.
Today financial stocks were the main drag, led by the NAB, down 1.01% to $38.33. AMP was down 2.4% to $6.50, Macquarie 1.16% to $80.27 and the Bank of Queensland 1.04% to $13.38.
The top stories Monday:
1. Iron ore blues. Arrium is taking another hard look at its costs after it got paid less for its iron ore than it cost to produce during the March quarter. Its shares closed down more than 11% to $0.15.
2. SOC GEN. The IMF has a warning on volatility in global markets that’s “not for the faint-hearted”.
3. China stimulus. Authorities moved again to shore up faltering economic growth with a huge 1% reduction to banks’ reserve ratio requirement (RRR) to 18.5%, effective today.