(RTTNews) - The Australian stock market opened on a positive note on the back of a modest surge on Wall Street overnight, but drifted lower subsequently with investors indulging in some selling in materials, financials, consumer staples and technology stocks.

The benchmark S&P/ASX 200 index, which rose to 4,559 in early trades, is currently down in the red at 4,518 with a loss of 22.1 points, or 0.5%. The broader All Ordinaries index is trading at 4,528, down 19.6 points, or 0.4%, from its previous close.

On Wednesday, the S&P/ASX 200 index had ended up 8.6 points, or 0.2%, at 4,540, while the All Ordinaries index gained 7.6 points, or 0.2%, to 4,548.

In the banking space, Westpac Banking Corporation, National Australia Bank and Commonwealth Bank of Australia are trading higher by 0.5%-1%, while ANZ Bank is down with a loss of over 2.5%.

Top miners BHP Billiton and Rio Tinto are exhibiting weakness. Newcrest Mining is up nearly 1%. Bluescope Steel and Incitec are trading lower, while Fortescue Metals and Lihir Gold are up with modest gains. Orica is down with a 1.5% loss.

Among energy stocks, Woodside Petroleum is gaining over 2%. Origin Energy, Santos and Oil Search are up with modest gains.

Leighton Holdings Ltd said its first quarter revenue was up ten per cent at A$4.5 billion, with full year revenue on track to exceed A$19 billion. With the core operating businesses remaining strong, the group generated a profit after tax (unaudited) of A$131 million, an increase of 25% on the prior first quarter. Full year net profit is expected to be about A$600 million, up from last financial year’s A$440 million. The company says work in hand as at September 30 was A$38.3 billion. The stock is currently trading flat.

Shares of News Corporation are trading over 4% up on strong results. The media giant reported a sharp 11% rise in first quarter net profit and said its operations are well placed to take advantage of improving global conditions. The company reported net profit was US$571 million (A$632.13 million) for the three months to September 30, compared with US$515 million (A$570.13 million) in the prior corresponding period.

On the economic front, the Australian balance of goods and services was a deficit of A$1.849 billion in September, seasonally adjusted, from a deficit of A$1.651 billion in August, according to the data released by the Australian Bureau of Statistics. During the month, exports were up 5% in adjusted terms, while imports rose 5%.

In the currency market, the Australian dollar opened higher with investors moving away from the U.S. dollar after the Federal Reserve opted to keep its target interest rate on hold. In early trades, the Aussie was quoting at US$0.9138-US$0.9139, up from Wednesday’s close of US$0.9014-US$0.9016.

Among other stock markets in the Asia-Pacific region, Japan, New Zealand, Korea and Singapore are trading notably lower, while Taiwan is trading flat. Markets in the region had closed moderately higher on Wednesday.

On Wall Street, stocks ended on a mixed note for a second straight session on Wednesday, giving up earlier gains following news that the Federal Reserve left interest rates near record lows amid continued economic concerns.

The choppy trading came after the Fed left its target for the federal funds rate unchanged in a range from zero to a quarter percent and reiterated its assessment that “exceptionally” low rates will continue for an “extended period.”

The major averages all saw notable downside in late day trading, pushing the tech-heavy Nasdaq into negative territory. The Nasdaq closed lower by 1.8 points, or 0.1%, at 2,055.5, while the Dow moved up 30.2 points, or 0.3%, to 9,802.1 and the S&P 500 gained 1.1 points, or 0.1% to close at 1,046.5.

Major European markets moved notably higher on Wednesday. U.K.’s FTSE 100 and the German DAX index gained 1.4% and 1.7% respectively, while the French CAC 40 index moved up 2.4%.

Crude oil prices rallied above US$80 per barrel on Wednesday after the Energy Information Administration reported a drop in weekly inventories. Light sweet crude for December finished at US$80.40 per barrel, up 80 cents for the session.

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Posted in Categories: Releases, Stocks.

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