The Australian share market has closed lower as investors fret over whether the US Federal Reserve will lift its benchmark interest rate.
Investors are not taking any risks because of uncertainty about the US Federal Reserve’s interest rate decision due later next week, CommSec market analyst Steven Daghlian said.
“There’s about a 20 per cent chance of a rate hike according to what markets are thinking,” Mr Daghlian said.
“But what will be more interesting is commentary coming out of the Fed about rate hikes and the impact this will have on the Australian dollar.”
The US Federal Funds rate has been held near zero since the global financial crisis in late 2008.
Mr Daghlian said adding to the risk-averse sentiment was a raft of Chinese economic data, including retail spending, due at the weekend.
Most sectors of the Australian share market finished in the red on Friday.
As for the banks, Westpac was down 26 cents at $30.50, National Australia Bank had gained one cent to $30.50, and ANZ had declined 13 cents to $27.52.
Commonwealth Bank shares have gone into a trading halt while the bank completes its capital raising bookbuild.
Energy stocks, which have been in focus after Woodside’s bid for Oil Search, continued to slide.
Woodside was down 72 cents at $28.41, while Santos had gained three cents to $4.46.
Mining stocks were also mixed with BHP Billiton down 21 cents at $23.71 and Rio Tinto up 73 cents at $52.00.
KEY FACTS
* At the close on Friday, the benchmark S&P/ASX200 index was down 23.9 points, or 0.47 per cent, at 5,071.1 points.
* The broader All Ordinaries index was down 20.8 points, or 0.41 per cent, at 5,096.2 points.
* September share price index futures contract was down 10 points at 5,027 points, with 39,497 contracts traded.
* The price of gold in Sydney at 1700 AEST was $US1,110.20 per fine ounce, up $US3.70 on Thursday’s price of $US1,106.50.
* National turnover was 1.47 billion securities worth $3.98 billion.