Australian shares are weaker as a mixed lead out of Wall Street dents the big banks.
The mining giants, BHP Billiton and Rio Tinto, however, are firmer despite concerns China’s economy may be experiencing its slowest annual growth in 14 years.
The major banks have started in weaker territory as investors again worry about the US Federal Reserve tapering its quantitative stimulus measures when it meets in late January, Australian Stock Report senior equity analyst Benny Sada says.
“The sector’s looking fully valued at the moment, so we’re seeing investors become more discerning about where they’re putting their money,” he said.
“They see more value in the mining sector compared to the financial space … and also we have concerns over Fed stimulus tapering, the impact that that may have on the US financial system.”
The big four banks all began weaker, with the Commonwealth down five cents at $75.42, ANZ 15 cents worse off at $30.88, Westpac falling 19 cents to $31.41 and NAB losing 15 cents to $33.59.
Telstra was 2.5 cents lower at $5.215.
But diversified miner BHP Billiton gained 18 cents to $38.07, and Rio was up 45 cents to $66.77 although iron ore miner Fortescue was five cents lower at $5.63.
Oil and gas giant Woodside Petroleum was 70 cents weaker at $38.42, and Santos had lost seven cents to $14.44.
On Wall Street, the Dow Jones Industrial Average was up 0.2 per cent while the broader S&P 500 was down 0.40 per cent.
Meanwhile, economists expect Chinese gross domestic product data for the December quarter to show the weakest performance since 1999.
KEY FACTS
* At 1015 AEDT on Monday, the benchmark S&P/ASX200 index was 18 points, or 0.34 per cent, lower at 5,287.9.
* The broader All Ordinaries index was down 16.2 points, or 0.30 per cent, at 5,300.2.
* The March share price index futures contract was 21 points lower at 5,246, with 5,302 contracts traded.
* National turnover was 216.5 million securities worth $242.1 million.
