The Australian share market has closed lower as investors fear that the European debt crisis may worsen unless European leaders take decisive action at a summit later this week.
At 1615 AEST on Tuesday, the benchmark S&P/ASX200 index was down 14.5 points, or 0.36 per cent, at 4,013.3 points, while the broader All Ordinaries index fell 15.7 points, or 0.39 per cent, to 4,056.3 points.
On the ASX 24, the September share price index futures contract was down 13 points at 3,984 points, with 21,203 contracts traded, according to preliminary calculations.
“It’s Europe again,” said CMC Markets chief market analyst Ric Spooner, pointing to the reason behind the local market’s decline on Tuesday.
“The market is positioning itself now that it is likely that nothing is going to come out of this leader’s summit (on June 28-29) in Brussels.”
This would affect consumer and investor confidence globally, which would weigh upon economic growth and corporate revenues.
Mr Spooner said that after the second Greek election, markets had rallied, but gains had since been unwound as investors became more pessimistic over whether the troubled euro zone had the will to fix its problems.
Mr Spooner said investors now feared a greater crisis, which could include Spain or Italy becoming unable to pay their debts, France being dragged into the debt crisis or political rebellion in the euro zone.
On the local market in the resources sector, global miner BHP Billiton was down 44 cents at $30.63, and Rio Tinto was 56 cents lower at $55.34.
Queensland-focused minerals explorer Ivanhoe Australia scraped off one cent to 60 cents after it said it would axe 50 jobs as new owner Rio Tinto seeks to reduce costs in the company.
Among the major banks, National Australia Bank was six cents weaker at $23.14, ANZ dipped four cents to $21.30, Commonwealth Bank added 15 cents to $51.70, and Westpac firmed two cents to $20.67.
In the media sector, Fairfax Media fell two cents to 55 cents after the company’s largest shareholder, Gina Rinehart, raised the prospect of selling out should she not secure seats on the board “without unsuitable conditions”.
Seven West Media fell 27 cents to 1.70 as former Woodside Petroleum chief executive Don Voelte replaced David Leckie as Seven West chief executive officer.
Broadcaster Ten Network shed 1.5 cents to 50 cents after Ms Rinehart, Lachlan Murdoch and James Packer increased their number of Ten Network shares by investing millions of dollars in the media company’s recent fund raising venture.
Among other stocks, struggling paper merchant PaperlinX was 0.1 cents lower at 6.5 cents after it said it expects to report a $171 million loss for the 2012 financial year due to difficult trading conditions, restructuring charges and losses on the sale of businesses in the United States and Italy.
Preliminary national turnover was 1.75 billion shares worth $3.45 billion, with 314 stocks higher, 742 down and 437 unchanged.
AAP tsc/g
