The Australian share market has opened lower after the United States’ condemnation of chemical weapon attacks in Syria triggered sharp falls on Wall Street.
After opening on Tuesday, the All Ordinaries were down 24.8 points, or 0.48 per cent, at 5,102.3.
This came after the Dow Jones Industrial Average dropped 64.05 points overnight, or 0.43 per cent, to close at 14,946.46.
The sell-off followed US Secretary of State John Kerry’s comments that the use of chemical weapons in Syria was a “moral obscenity” and that President Barack Obama would demand accountability for the attacks.
CMC market analyst Michael McCarthy said US stocks had been doing well before Kerry’s comments, even shrugging off a round of weaker than expected durable goods orders data.
“It was the comments by Kerry that appear to have weighed on the market,” he said.
“He appeared to confirm … that the US would announce action on Syria in the next few days, and that of course has sent investors rushing to the sidelines.”
But he added it was likely the local market would recover from this early drop by the end of the day.
As earning season continues, the large fund managers would be holding off for the “full corporate picture” to emerge, Mr McCarthy said.
In equities news, embattled surfwear brand Billabong made a net loss of $860 million last financial year following major writedowns and a drop in revenue.
The result was affected by $867 million in significant items, including more than $600 million in writedowns in the value of goodwill, brands and other intangibles.
At the opening of trade, Billabong shares were down six cents, or 10.6 per cent at 50.5 cents.
It was better news for Flight Centre, with stronger sales and improved margins helping the travel agency group 2012/13 profit grow to $246 million, up from $200 million the previous year.
Despite nearly tripling its net profit following a strong first half performance from its heavy equipment business WesTrac, Seven Group’s shares were down 76 cents, or 9.8 per cent, to $6.95.
In the resources sector, global miner BHP Billiton dropped 18 cents to $35.40, while Rio Tinto lost 40 cents at $59.41.
Among the big banks, National Australia Bank fell 25 cents at $32.30, Commonwealth Bank was up 15 cents to $72.73, Westpac was down 18.5 cents to $31.49, and ANZ was seven cents lower to $29.75.
KEY FACTS
* At 1015 AEST on Tuesday, the benchmark S&P/ASX200 index was 25.4 points lower, or 0.49 per cent, at 5,110 points.
* The broader All Ordinaries index was down 24.8 points, or 0.48 per cent, at 5,102.3 points.
* The September share price index futures contract was down 32 points at 5,094 points, with 4,011 contracts traded.
* At 1020 AEST, national turnover was 239 million securities worth $350.2 million.
