The Australian share market is lower in early trade as wary investors look to local politial turmoil and the US interest rate decision later this week.
US stocks finished lower overnight, with the Dow Jones Industrial Average dropping 62.13 points or 0.4 per cent, as traders looked ahead to the US Fed meeting that could result in the first interest rate hike in over nine years.
“The broader focus for the market remains the Fed decision. We had weak cues from Wall Street and we are still digesting the domestic political changes,” said optionsXpress market analyst Ben Le Brun.
Australia will get a new Prime Minister after Malcolm Turnbull replaces the unpopular Tony Abbott as leader of the Liberal party on Monday.
Some analysts expect the move could lift consumer and economic confidence.
Energy and resources stocks were under pressure in early trade, after world crude prices extended their losses overnight. Copper prices also fell over worries about demand growth in China, the world’s top consumer of industrial metals.
Woodside Petroleum fell 39 cents to $28, Origin Energy was down 10 cents at $7.08. while Santos declined two cents at $4.49.
Resources giant BHP Billiton was down three cents to $23.71 while rival Rio Tinto dropped 55 cents to $51.31.
The major banks were weaker, with National Australia Bank down 21 cents at $30.33, Westpac 24 cents lower at $30.75 and ANZ 22 cents lower at $27.56. The Commonwealth Bank lost 31 cents at $71.31.
“We are anticipating some listless trade for the next few days, until the Fed decision,” Mr Le Brun said.
He expects a weak start in the Asian markets.
KEY FACTS
* At 1040 AEST on Tuesday, the benchmark S&P/ASX200 index was down 27.5 points, or 0.54 per cent, at 5,069 points.
* The broader All Ordinaries index was down 27.1 points, or 0.53 per cent, at 5,093.40 points.
* September share price index futures contract was down 28 points at 5,063 points, with 44,666 contracts traded.
* National turnover was 380.09 million securities worth $700.63 million at 1040 AEST.
AAP
