The share market has fallen as China’s central bank again devalues its currency against the US dollar, sending the Australian dollar a cent lower.
The market was relatively steady in the first hour of trade but news of the People’s Bank of China’s second intervention in currency markets in as many days, and the Australian dollar’s immediate drop to a low of 72.16 US cents, had the major indices 0.55 per cent lower shortly after midday (AEST).
The mining sector was the main area of weakness, while the major banks were mixed after Commonwealth Bank announced a $5 billion capital raising.
KEY FACTS
* At 1215 AEST, the benchmark S&P/ASX200 index was down 30.3 points, or 0.55 per cent, to 5,442.9 points.
* The broader All Ordinaries index was down 30.4 points, or 0.56 per cent, at 5,442.7 points.
* The September share price index futures contract was down 24 points at 5,382, with 21,445 contracts traded.
* National turnover was 1 billion securities worth $2.3 billion.