Evening Market Analysis: Tough Day At The Office
14th May 2012
Evening Market Analysis: Tough Day At The Office
Aussie shares declined today, following negative leads from US and European markets overnight.
Concerns about Greece’s political instability continued to weigh on sentiment, with matters compounded by Spanish yields climbing well beyond 6%.
At home, the latest RBA minutes from this month’s meeting showed policymakers cut the official cash rate by 50 basis points as a result of a benign inflation outlook and an expectation that banks wouldn’t pass on the whole reduction.
The RBA did upwardly revise its global growth forecast but also noted that Australian inflation and economic growth forecasts were revised down.
The central bank gave no specific hint of further easing, but overall the central bank’s bias still seems tilted towards lower rates.
Most sectors finished in negative territory, with only the defensive sectors such as telcos and utilities attracting serious buying.
The big four banks all lost ground; Westpac dropped 0.8%, whilst rival CBA let go of 0.3%.
The mining majors weighed on the market following a horror night for commodity prices. BHP and Rio Tinto declined 1.7% and 1.1% respectively.
Pacific Brands plummeted 5.7% after announcing that a takeover bid for the company is unlikely in the near term.
Coca-Cola Amatil advanced 1.1% after announcing that it expects its first-half net profit to grow by around 4%-5% for FY12.
The ASX 200 gave up 31 points (-0.7%) to settle at 4266.
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Written by: marketpulse
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Posted in Evening, Market Analysis
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