The market started off solidly, holding up early in spite of negative leads from international markets, only to fall sharply following the announcement.
Most sectors are underwater, with the materials and healthcare sectors the hardest hit.
Defensive telco and utilities are the only sectors showing any real gains.
In company news, Austar has reported a large increase in net profit for the six months to June 30 and commented that it remains confident the Foxtel deal will receive approval despite the competition regulator’s misgivings.
Around the region, Asian markets are trading lower; the Hang Seng is down 1% whilst the Shanghai Composite is off 0.6%.