RTTNews - The stock market in Australia closed lower on Monday, taking cues from the U.S. market, which ended lower on Friday on uncertainty about the economic outlook. Lower commodity prices also impacted the Asian market negatively, dragging down mining related stocks.
In the U.S., the Labor Department on Friday said its consumer price index was unchanged in April after edging down by 0.1% in March. The lack of growth in consumer prices came in line with the expectations of economists. The report also showed that the core consumer price index, which excludes food and energy prices, rose 0.3% in April after rising 0.2% in each of the three previous months. Economists had expected core prices to edge up 0.1%.
A report from the Federal Reserve showed a slightly smaller than expected 0.5% decrease in industrial production in April, while the Reuters/University of Michigan Consumer Sentiment index rose to 67.9 in May from 65.1 in the previous month.
The Dow closed down 62.68 points or 0.8% at 8,269, the Nasdaq closed down 9.07 points or 0.5% at 1,680 and the S&P 500 closed down 10.19 points or 1.1% at 883.
In Asian trading, crude oil ended higher by $0.60 at $56.94 a barrel in electronic trading. On Friday, Light sweet crude for May delivery ended at $56.34 a barrel on Friday.
The benchmark S&P/ASX 200 index lost 37.60 points, or 1.00% to 3,736, and the broader All Ordinaries index dropped 37.30 points, or 1.00% to 3,722.
Mining related stocks led the declines on lower commodity prices. Index leader BHP Billiton lost 1.32% and its rival, Rio Tinto shed 1.18%.
Retail stocks ended weaker. David Jones shed 3.51%, Wesfarmers lost 3.53%, Woolworths slipped 0.15%, and Harvey Norman declined 3.93%.
Mixed trading was witnessed among the banking stocks. While ANZ Bank gained 0.20%, Commonwealth Bank of Australia edged down 0.89% and Macquarie Group lost 3.09%. Westpac Banking declined 4.55% after the stock went ex-dividend. National Australia Bank remained unchanged from previous close.
Energy stocks also showed mixed sentiment. Woodside lost 1.56% and Oil Search declined 1.37%, but Santos edged up 0.50%
Gold related stocks ended higher following a rise in gold prices in Sydney. Lihir Gold advanced 1.34%, Sino Gold gained 2.92% and Newcrest Mining gained 1.02%.
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