The share market is sharply lower as investors react to disappointing economic data from the US, and take a cautious approach ahead of the release of important local news.
The market was down 1.4 per cent at noon (AEST), heading for its worst session in a month, and reversing the strong gains made on Friday.
CMC Markets analyst Ric Spooner said Friday’s unexpected gains were being unwound after a weak session on Wall Street.
A revised US economic growth figure showed the world’s largest economy contracted 0.7 per cent in the first quarter of 2015, as expected, but other data showed a rebound in the ensuing months may not prove as strong as expected.
“The net effect of the rally on Friday has been to wrong foot the local market, after the fall that occurred on overseas markets,” Mr Spooner said.
Investors are now looking ahead to local economic data out later in the week, including economic growth, international trade and retail spending, plus the Reserve Bank’s interest rate decision.
“There seems to be concerns now ahead of what could be a significant couple of weeks for the market, given what is happening with Greece and its debt situation, and also a lot of economic data to come out,” Mr Spooner said.
All sectors of the market were lower, though several major energy and gold stocks were stronger on higher commodity prices.
Oil Search was six cents higher at $7.66, Santos had added one cent to $8.26 while Woodside Petroleum was down 13 cents at $36.50.
Gold miner Newcrest was up 16 cents at $14.29.
Elsewhere in resources, BHP Billiton was down 67.5 cents at $28.915, Rio Tinto had dropped 94 cents to $57.26 and Fortescue Metals was five cents weaker at $2.37.
Commonwealth Bank was down $1.405 at $83.685, National Australia Bank was down 65.5 cents at $33.665, ANZ had dropped 56 cents to $32.63 and Westpac was 58 cents weaker at $32.98.
Telstra had shed five cents to $6.17.
KEY FACTS
* At 1225 AEST on Monday, the benchmark S&P/ASX200 index was down 83.3 points, or 1.44 per cent, at 5,693.9 points.
* The broader All Ordinaries index was down 79.1 points, or 1.37 per cent, at 5,695.8 points.
* The June share price index futures contract was 81 points lower at 5,697 points, with 18,377 contracts traded.
* National turnover was 863 million securities worth $1.8 billion.
