The share market drifted lower as a record annual profit from Westpac and strong retail sales figures failed to provide impetus.
“No one’s really looking to buy today. There’s a huge amount of event risk,” IG chief market strategist Chris Weston said.
Signs of potential deflation in Europe, and more talk of the US Federal Reserve easing its economic stimulus program earlier than global markets were expecting were influencing trade, he said.
Markets are also anticipating a key Communist Party meeting later this week in China will unveil some major reforms, but there is a risk investors will be disappointed.
Mr Weston said the annual financial report from Westpac, Australia’s second largest bank by market value, weighed on the market.
Westpac made a record cash profit $7.1 billion, but the quality of its financials was disappointing, Mr Weston said.
“It was a bit of a miss on the pre-provision operating profit,” he said.
Westpac shares dropped 42 cents to $34.16.
Among its rivals, National Australia Bank shed 20 cents to $35.43, ANZ slipped 21 cents to $33.51 and Commonwealth Bank lifted 30 cents to $76.10.
The latest retail spending figures showed a rise of 0.8 per cent in September – double market expectations.
The news helped department store stocks, with David Jones adding 13 cents to $3.03 and Myer found six cents to $2.56.
Harvey Norman lifted four cents to $3.27 after the retailer said its quarterly sales rose, but it also said it is yet to see a boost in consumer spending following the federal election.
In the resources sector, BHP Billiton dipped one cent to $37.52 and Rio Tinto gained 18 cents to $63.72.
Iron ore miner Fortescue jumped 16 cents to $5.32 following a rise in the spot price of iron ore on Friday.
Beverages supplier Coca-Cola Amatil dropped 61 cents to $12.28 after it said annual earnings will be lower than last year, partly because a post-election lift in consumer spending has not materialised.
KEY FACTS
* At 1615 AEDT on Monday, the benchmark S&P/ASX200 index was down 20.6 points, or 0.38 per cent, at 5,390.5 points.
* The broader All Ordinaries index was 22.3 points, or 0.41 per cent, lower at 5,384.2 points.
* The December share price index futures contract was 10 points lower at 5,380 points, with 19,410 contracts traded.
* National turnover was 1.33 billion securities worth $2.88 billion.
