The Australian share market closed lower on Wednesday after a positive lead from United States markets was outweighed by continued concerns about Europe’s debt problems.
At the close, the benchmark S&P/ASX200 index was 38.2 points, or 0.89 per cent, lower at 4,247.4 points, while the broader All Ordinaries index lost 37.7 points, or 0.87 per cent, to 4,313.8 points.
The December share price index futures contract was down 41 points at 4,266 points, on a volume of 36,444 contracts.
Positive data on the US economy boosted Wall Street on Tuesday, with the Dow Jones Industrial Average gaining 17.18 points, or 0.14 per cent, at 12,096.16.
But in Europe, markets moved mostly lower, with investors keeping a wary eye on the eurozone debt crisis as Italian, Spanish and French borrowing costs spiked worryingly higher.
“We had a pretty strong lead coming from the US overnight but at the same time it did look like we were in for a tough session,” IG Markets market strategist Stan Shamu said.
“The problems surrounding Europe are persisting and at the moment the debt yields are just skyrocketing to record levels.
“And it seems like the pressure now is actually starting to affect some of the core nations like France.
“This has really got ivvestors worried.”
Mr Shamu said investors were still concerned that there appeared to be some resistance among Greek leaders to adopting austerity measures in return for European bailout funds.
Investors were also worried about how smoothly Italy’s premier-designate Mario Monti could put together a cabinet able to win parliamentary backing and guide Italy through its debt crisis.
“It might take a while for things to get better, which I think most investors do realise. That’s why trading remains subdued,” Mr Shamu said.
On the local market in the resources sector, global miner BHP Billiton shares fell 23 cents to $36.65 while Rio Tinto shares dumped 18 cents to $67.65.
Atlas Iron fell cents to $3.10 after it bought Gondwana Resources’ 90 per cent stake in the Corunna Downs project in Western Australia for $2.1 million in cash.
Among the major banks, Commonwealth Bank fell 53 cents to $48.62, National Australia Bank added nine cents to $24.61, Westpac surrendered 46 cents to $20.63 and ANZ gave away 23 cents to $20.47.
National carrier Qantas Airways improved 5.5 cents to $1.705 as chief executive Alan Joyce said negotiations with unions were continuing and he was optimistic a deal would be reached before a 21-day deadline expires.
Taxi docket firm Cabcharge Australia edged up one cent to $4.58 after it said its results for the first quarter of the financial year were beyond expectations.
Shares in internet service provider iiNet were in a trading halt amid speculation it is the preferred bidder for Australian Capital Territory telco TransACT. Before the trading halt iiNet had dipped five cents to $2.36.
National turnover was 2.02 billion shares worth $3.91 billion, with 610 stocks down, 390 up and 387 unchanged.
