News from AAP

Aust stocks 0.5% lower on weak commodities

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The Australian market has opened half a per cent lower due to falling commodity prices and a weakness on overseas markets.

At 1022 AEST on Thursday, the benchmark S&P/ASX200 index was down 21.6 points, or 0.5 per cent, at 4,312.3, while the broader All Ordinaries index was down 24.1 points, or 0.55 per cent, at 4394.8.

On the ASX 24, the June share price index futures contract was 27 points lower at 4,322, with 431,886 contracts traded.

A weak result in a Spanish bond auction and the reluctance of the US Federal Reserve to launch a fresh round of stimulus for the world’s largest economy sent Wall Street share prices tumbling Wednesday.

The Dow Jones Industrial Average sank 124.80 points, or 0.9 per cent, to 13,074.75 while European stock markets slumped.

At the close, London’s benchmark FTSE 100 index of top companies fell 2.30 per cent to 5,703.77 points.

IG Markets analyst Cameron Peacock said the US markets had weakened over the last two days as commodity prices fell and fears heightened over European debt.

“Given we’re so tied to commodity prices with BHP, Rio and Fortescue – that’s the major reason we’ve come off,” he said.

World oil prices tumbled after the US government reported a big jump in the nation’s crude stockpiles, adding to concerns about growth in the world’s biggest oil-consuming nation.

Woodside was down four cents at $39.44 and Santos was six cents lower at $14.27.

BHP Billiton was 45 cents, or 1.3 per cent, lower at $34.29 while Rio Tinto was $1.11, or 1.7 per cent, lower at $65.28.

Precious metals also tumbled, with gold ending at 12-week lows, as investors reacted to the Federal Reserve’s reticence over further stimulus.

The spot gold price in Sydney was $1622.85, down $14.10, from Wednesday’s close of $US1,636.95 per fine ounce.

Newcrest Mining was 64 cents, or 2.25 per cent, lower at $27.86.

Financial stocks all opened lower.

NZ shares fell four cents to $22.97 while Westpac shares lost four cents to $22.08.

At 1030 AEST, local national turnover was 418 million securities worth $562.4 million, with 138 stocks up, 517 down and 292 unchanged.