The Australian share market has lost earlier gains to close in the red as two major global events hold investors back.
During morning trade, the share market was in positive territory with bargain hunters lifting the major banks, CommSec market analyst Steven Daghlian said.
But it eased off during afternoon trade as investors exercised caution ahead of last-minute Greek debt negotiations and ahead of the US Federal Reserve’s monetary committee’s two-day policy meeting.
The meeting is expected to shed light on the US central bank’s interest rate hike plans.
“The market is treading water a little because there are big events to come with the US central bank’s policy meeting kicking off tonight and the European finance ministers meeting on Thursday night,” Mr Daghlian said.
The eurozone finance ministers meeting may be the last chance to strike a deal to rescue Greece from default.
US and European stock markets fell overnight on increased fears Greece could default on its debt and possibly exit from the euro zone after negotiation with its international creditors broke down.
However, local financial stocks received a boost after Insurance Australia Group announced billionaire Warren Buffett’s Berkshire Hathaway is buying a $500 million stake.
IAG was up 24 cents, or 4.31 per cent, at $5.81, while Suncorp had risen 11 cents to $13.50.
The big banks were higher with Commonwealth Bank up 49 cents at $82.38, ANZ added 32 cents to $32.17, National Australia Bank gained 26 cents to $32.79 and Westpac rose 58 cents to $32.30.
Westpac announced on Tuesday plans to sell down its stake in BT Investment Management for up to $700 million.
The major miners and energy stocks were lower due to a fall in iron ore and oil prices overnight.
BHP Billiton was down 17 cents at $27.75, Rio Tinto dropped $1.38, or 2.41 per cent to $55.91 and Fortescue Metals was 12 cents weaker at $2.32.
Gas producer Santos was down 13 cents at $7.99, while Woodside Petroleum was down 26 cents to $35.41.
Pathology and radiology provider Sonic Healthcare was up 33 cents, or 1.62 per cent, at $20.73 due to positive broker reports about its $455 million acquisition of Swiss medical laboratory group Medisupport.
KEY FACTS
* At the close on Tuesday, the benchmark S&P/ASX200 index was down three points, or 0.05 per cent, at 5,535.8 points.
* The broader All Ordinaries index was down 6.3 points, or 0.11 per cent, at 5,535.2 points.
* The June share price index futures contract was down 14 points at 5,529 points, with 143,618 contracts traded.
* The price of gold in Sydney at 1700 AEST was $US1,187.20 per fine ounce, up $US3.50 from $US1,183.70 on Monday.
* National turnover was 1.63 billion securities worth $4.35 billion.
