RTTNews - The Australian stock market ended in negative territory on Tuesday, dragged down by resource stocks on weaker commodity prices. A weak closing on Wall Street amid renewed concerns of a global recovery also impacted sentiment.
In the U.S., stocks finished Monday's session substantially weaker as traders did some profit taking following the recent rally, with some disappointing economic data raising concerns that stocks have come too far too fast in light of the near-term economic outlook.
A report released by the New York Federal Reserve revealed that conditions for manufacturers in the region have deteriorated at a faster pace during June compared with May. The New York Fed said its general business conditions index fell to a negative 9.41 in June from a negative 4.55 in May, with a negative reading indicating a deterioration in conditions. Economists had expected the index to edge down to a negative 5.10. Another report released by the National Association of Home Builders revealed that the National Association of Home Builders/Wells Fargo Housing Market Index fell to a reading of 15 in June from a reading of 16 in May. Economists had been expecting the index to edge up to a reading of 17.
The Dow closed down 187.12 points or 2.1% at 8,612, the Nasdaq closed down 42.42 points or 2.3% at 1,816 and the S&P 500 closed down 22.49 points or 2.4% at 924.
The All Ordinaries Index opened sharply lower at 4,015 compared to its previous close at 4,030, and continued to drift lower mirroring the weak closing on Wall Street Monday and the continued fall in commodity prices. The index remained below the unchanged line throughout the session before closing at 3,958, representing a loss of 72.50 points, or 1.80%. The benchmark S&P/ASX 200 Index followed a similar trend and ended lower at 3,963, a loss of 69.20 points or 1.72%.
Crude oil prices ended flat with a gain of $0.01 at $70.63 a barrel in Asian trading. Light sweet crude oil finished at $70.63, down $1.42, on Monday in New York on concerns about weak demand.
Resource stocks dragged the market lower on weak commodity prices. BHP Billiton, the world's largest mining company, declined 1.46%. Rio Tinto fell 3.01%. The company closed its $15 billion rights issue today and would go ex-dividend from tomorrow. Nickel producer Mincor Resources slumped more than 8.5% on weaker nickel prices.
Among oil stocks, Woodside Petroleum lost 3.20%, Santos shed 4.85% and Oil Search fell 2.93%.
Financial stocks also ended weaker. Commonwealth Bank slipped 0.29%, National Australia Bank lost 1.26%, Australia and New Zealand Bank fell 2.89% and Westpac Banking Corp. edged down 0.05%.
Mixed trading was witnessed among gold stocks. While Lihir Gold edged down 0.34% and Sino Gold slumped 5.95%, Newcrest Mining bucked the trend and ended with a gain of 0.13%.
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