The share market has opened lower as further falls in the price of Australia’s largest export, iron ore, hit the mining sector.
Fortescue Metals was one of the worst early performers, after the spot price of iron ore dropped another dollar to $US97.50.
“Our market is being influenced by concerns over signs of softening growth in China and the declining iron ore price,” CMC Markets chief analyst Ric Spooner said.
Banks, retailers and healthcare stocks were also lower, but Telstra continued its recent rise.
Fortescue was down 16 cents, or 3.5 per cent, at $4.38, while BHP Billiton had dropped 49 cents to $36.96 and Rio Tinto was 84 cents lower at $59.21.
Among the major banks, Westpac was down 12 cents at $33.56, ANZ was down 17 cents at $32.58, National Australia Bank had dropped 21 cents to $32.89 and Commonwealth Bank was 28 cents lower at $79.55.
Coles owner Wesfarmers had dropped 25 cents to $42.45 and Woolworths was down 10 cents at $37.01.
The release of wage price index at 1130 AEST should influence trading later in the day, as wages have a direct impact on consumer spending, Mr Spooner said.
A weaker than expected reading would hurt investor sentiment, adding to recent disappointing snapshots of consumer confidence.
Telstra was up four cents at $5.34, after a strong performance on Tuesday.
KEY FACTS
* At 1030 AEST on Wednesday, the benchmark S&P/ASX200 index was down 26.4 points, or 0.49 per cent, at 5,394 points.
* The broader All Ordinaries index was down 26.4 points, or 0.49 per cent, at 5,374.3 points.
* The June share price index futures contract was 29 points lower at 5,401 points, with 7,315 contracts traded.
* National turnover was 340 million securities worth $642 million.
