The Australian market went on a see-saw ride today.
The ASX opened firmer, jumped from a cliff, and later recovered some lost ground but was still weaker.
Late morning the S&P/ASX 200 was down 1.6% or 84.61 points to 5,208.30.
The market should have been set for gains after Friday’s stronger US jobs numbers.
But the major banks all lost 2% or more and dragged the rest of the market down.
The market later recovered some of the losses, with the banks rallying.
The NAB closed down 0.33% to $32.38, Westpac ended square at $32.42, ANZ was down 0.13% to $31.51 and Commonwealth weaker by 0.53% to $75.77.
On the other side, Rio Tinto was up 4.31% to $60.07 on talks of a merger with Glencore.
After the Reserve Bank announced it would keep cash rates unchanged, the S&P/ASX 200 was at 5,282.70, down 0.19%.
Shane Oliver, Chief Economist AMP Capital, says the rough patch in shares could go a bit further.
“However, the bull market will likely remain intact thanks to a lack of over-valuation, the benign economic cycle, easy monetary conditions and a lack of investor euphoria,” Dr Oliver says.
Australian shares are likely to see a strong rally into year end, he says.