RTTNews - The Australian stock market is trading in negative territory on Monday following the mixed cues from Wall Street on Friday. Resource stocks are declining on lower base metal and oil prices. Banking stocks are also trading weak.
In early morning trades, the benchmark S&P/ASX 200 Index is losing 18.50 points or 0.47% to 3,885.30 and the broader All Ordinaries Index is down 15.70 points or 0.40% to 3,883.80.
U.S. stocks finished Friday's session on a mixed note. A report from the Commerce Department showed that personal spending, incomes and savings all rose in May. However, investors were worried that the savings rate touched a 15-year high, as it stoked concerns that demand in the world's largest economy will remain weak.
Crude oil fell on Friday amid demand concerns and lost the US$70 a barrel mark again. Light sweet crude oil for August delivery closed at US$69.16 per barrel on the New York Mercantile Exchange, down US$1.07 for the session.
On Friday, the Australian stock market closed higher, with the financial sector showing strength. The S&P/ASX200 index gained 47.8 points or 1.24% to 3903.8, while the All Ordinaries index rose 48 points or 1.25% to 3899.5.
The markets have little to digest in terms of economic news on Monday.
In the currency market, the Australian dollar opened firmer against the U.S. dollar on Monday as investors sold the greenback on new calls for a global reserve currency. In early morning trades, the local unit was trading at US$0.8073-US$0.8079, up from Friday's close of US$0.8043-US$0.8046.
In the mining space, BHP Billiton is down 0.82% and rival Rio Tinto is losing 1.37%. Gold miners are trading mixed despite higher gold prices. Newcrest Mining is down 0.10% and Lihir Gold is down 1%, while Newmont Mining is up 1.52%.
Among the major banks, Australia and NZ Banking Group is down 0.37%, Commonwealth Bank of Australia is losing 0.65% and National Australia Bank is declining 0.67%. Westpac is unchanged.
In the oil sector, Woodside Petroleum is adding 0.02% and Santos is up 0.21%, while Oil Search is losing 0.18%.
Wesfarmers' supermarket arm, Coles, said it will sell 45 of its supermarkets and eight Liquorland stores to independent group FoodWorks for approximately A$35 million, as part of its plan to improve its network. Shares of Wesfarmer are up almost 3%.
Toll Group said it has entered into an A$180 million three-year agreement with Chevron Australia to manage logistical services on the Gorgon gas project on Barrow Island off Western Australia. However, the company's shares are down 0.47%.
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