Australian shares start the trading week in a slump

[Pelican Press 0]

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*********** shares start the trading week in a slump

Every sector of the *********** share market was lower at midday, but the losses had at least eased from early trading.

The benchmark S&P/ASX200 index slumped 94.5 points, or 1.2 per cent, in the first few minutes of trading on Monday, but had been grinding higher since then.

At noon AEST, the benchmark S&P/ASX200 index was still down 58.7 points, or 0.73 per cent, to 7,954.7, while the broader All Ordinaries had dropped 57 points, or 0.69 per cent, to 8,157.8.

Capital.com analyst Kyle Rodda said while a monthly US jobs report released on Friday night hadn’t been that bad, markets were reacting as if it was a portent of recession.

The non-farm payrolls report showed America’s economy added 140,000 jobs in August, below estimates of about 160,000 economists had expected. But unemployment ticked lower and wages ticked higher.

Pepperstone head of research Chris Weston said the jobs report lacked the clarity many crave.

He said a speech by Federal Reserve official Christopher Waller was also vague on whether the central bank would opt to cut interest rates by a half a percentage point next week, rather than its more traditional cut of a quarter of a percentage point.

With hindsight, that mix of weaker employment data and a non-committal Fed had proven to be a toxic mix for risk, Mr Weston said.

The ASX’s financial sector was the biggest ****** at midday, down 1.2 per cent.

All of the big four banks were lower, with ANZ drooping 1.1 per cent, Westpac down 1.5 per cent, and CBA and NAB dipping 1.0 per cent.

Bunnings and Kmart owner Wesfarmers had fallen 1.3 per cent and Telstra had dipped 0.9 per cent.

In the heavyweight mining sector, Rio Tinto had dropped 1.0 per cent, Fortescue had edged 0.1 per cent lower while BHP was up 0.1 per cent.

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