Australian stocks have slid more than half a per cent as falls among the big retail banks pushed the broader market lower.
The benchmark S&P/ASX200 index closed down 26.2 points, or 0.61 per cent, at 4,303.5 points on Tuesday, while the broader All Ordinaries index fell 26 points, or 0.6 per cent, to 4,325.6 points.
On the ASX 24, the September share price index futures contract dropped 23 points to 4,313 points, on volume of 22,983 contracts.
Wall Street was closed for a public holiday overnight, leaving the Australian market with little direction from offshore at the start of the local trading day.
However, sentiment for most of the day was sour, sending stocks south and reversing the gains made on Monday.
Financial stocks were the worst-performing sector on Tuesday, according to IRESS data, with the big four retail banks posting declines.
ANZ backpedalled 50 cents, or 2.01 per cent, to $24.34 and Westpac ended down 53 cents, or 2.13 per cent, at $24.32. They were the two worst-performing stocks on the S&P/ASX20.
Commonwealth Bank was off 36 cents at $54.63 and National Australia Bank fell 20 cents to $25.10.
CommSec market analyst Juliette Saly said investors were looking ahead to the upcoming meeting of the European Central Bank (ECB) and the release of US employment figures – called the non-farm payrolls report – later this week.
As a result, trading volumes were low, with market players preferring to stay on the sidelines prior to these two important events.
“The payrolls number at the end of the week is always a major mover for global markets,” Ms Saly said.
“We wouldn’t expect to see too much volume or too many people really wanting to get into the market until we wait to see what comes through with those numbers and whether the ECB is going to provide any more stimulus.”
Making news on Tuesday, miner Fortescue Metals said it was shedding staff and deferring some development work to reduce costs in response to uncertainty created by falling iron ore prices.
Fortescue, which was the most traded stock by volume as 35.95 million shares changed hands, fell 15 cents, or 4.21 per cent, to $3.41.
In percentage terms it was the second-largest decline among all stocks in the S&P/ASX50.
“We know that iron ore prices have been falling for a few months and obviously had a big impact on Fortescue’s bottom line,” Ms Saly said.
BHP Billiton advanced 15 cents to $31.56 and Rio Tinto rose 52 cents to $50.37 after commodities prices firmed in London trade.
The spot price of gold in Sydney finished at $US1,693.71 per fine ounce, up $US7.26 from Monday’s local close of $US1,686.45 per ounce.
National turnover was 1.58 billion securities worth $4.38 billion, with 398 stocks up, 566 down and 341 unchanged.
