The Australian share market closed marginally lower as wary investors held fire ahead of a Wednesday deadline for a long-term solution to the US debt crisis.
Europe’s debt woes also continue to dampen sentiment and there have been worrying signs from China and Japan, IG Markets market strategist Stan Shamu said.
The benchmark S&P/ASX200 index was down 14 points, or 0.34 per cent, at 4,163 points after hitting a four-week low of 4140.4 points during Monday’s session.
The broader All Ordinaries index was lower by 13.1 points, or 0.31 per cent, at 4,233.6 points.
On the ASX 24 at 1632 AEDT, the December share price index futures contract was five points higher at 4,186 points, with 28,461 contracts traded.
Trading volumes were low, continuing a recent trend as macroeconomic uncertainty prompted investors to sit on the sidelines.
National turnover was 1.6 billion shares worth $2.9 billion, with 374 stocks up, 613 down and 401 steady.
Mr Shamu said markets were weaker across Asia as the weight of Europe’s debt crisis continued to affect sentiment.
Investors were also awaiting a Wednesday deadline for a bipartisan political “supercommittee” to find a long-term solution to the US debt crisis.
The committee is expected to announce that it has failed to come up with $US1.2 trillion worth of cuts from the US federal budget, Mr Shamu said.
He said Japan had been in focus after swinging back to a trade deficit in October.
“Its trade balance figures missed expectations this morning,” Mr Shamu said.
“Worryingly, Japanese shipments to top trading partner, mainland China, fell 7.7 per cent and US-bound exports slipped 2.3 per cent.”
Selling was also partly motivated by Chinese Vice Premier Wang Qishan telling London’s Financial Times that the world would enter a long-term recession, Mr Shamu said.
He said cyclical stocks continued to struggle.
Mining giant BHP Billiton eased 23 cents to $35.90 and Rio Tinto backtracked $1.15, or 1.72 per cent, to $65.90, but Fortescue bucked the trend, adding five cents to $4.90.
Westpac also swam against the stream, gaining five cents to $20.42.
National Australia Bank dropped 26 cents to $23.20, ANZ fell 31 cents to $19.75 and Commonwealth Bank gave up 18 cents to $47.55.
The energy sector was mixed after the oil price eased.
Woodside was up 38 cents at $35.33 and Santos was down 12 cents at $12.76.
Making headlines on Monday, Qantas has not been able to reach an agreement with two unions representing its workers, while talks with a third union are stalling, in the wake of last month’s unprecedented grounding of the airline’s entire fleet.
Qantas inched two cents lower to $1.64.
Steelmaker OneSteel said it expected conditions for the Australian steel industry would remain challenging.
OneSteel retreated 3.5 cents, or 3.63 per cent, to 93 cents.
Fellow steelmaker BlueScope was the worst performer on the S&P/ASX 100 index, falling four cents, or 6.15 per cent, to 61 cents.
The best performer on that index was engineering firm UGL Ltd, up 29 cents, or 2.21 per cent, at $13.40.
