The share market has started the week with losses following falls out of the US and expectations there will not be any rate cuts in Australia soon.
IG market strategist Stan Shamu said the fact that a cut in the cash rate was deemed unlikely ahead of Tuesday’s Reserve Bank of Australia board meeting was viewed by investors as a negative for the Australian economy.
“The reason being, we have already seen a pretty sharp depreciation in the Aussie dollar, which has translated to an inflation risk for the Australian market,” he told AAP.
The company earnings season has begun with electronics retailer JB Hi-Fi lifting its half year profit more than 10 per cent to $90.3 million on stronger sales and improved margins.
Its shares were up 32 cents, or 1.83 per cent, to $18.33 at 1055 AEDT.
However, most sectors were making losses.
Among resources stocks, BHP Billiton had dropped 16 cents to $36.41, Rio Tinto had fallen 3.0 cents to $65.61 and iron more major Fortescue Metals had shed 2.0 cents to $5.31.
The major banks also were lower, with ANZ falling the most, down 26 cents to $29.87, National Australia Bank easing 14 cents to $33.11, Westpac dropping 9.0 cents to $30.78 and Commonwealth Bank off 26 cents to $73.97.
KEY FACTS
* At 1040 AEDT on Monday, the benchmark S&P/ASX200 index had lost 18 points, or 0.35 per cent, to 5,172 points.
* The broader All Ordinaries index had lost 18.2 points, or 0.35 per cent, at 5,186.9 points.
* The March share price index futures contract was 23 points lower at 5,120 points, with 11,299 contracts traded.
* National turnover was 400.6 million securities worth $484.3 million.
