Australian shares ended the week when banking stocks drew cold comfort from investors watching Australian corporate bad debts pile higher and the US Government struggle to find a way to contain toxic bank loans. A heralded fiscal stimulus from China to kick-start its own economy was ignored the day after mining stock investors talked up commodity prices and share prices.
Acknowledging there is no quick fix or “silver bullet” to the current US bank and housing mortage crisis, would at least allow some semblance of reality to enter the debate as to how much more can markets fall? Attempts by the US to plug one hole, only to see another leak, witness Citi and now General Motors, then the FDIC, are likely to ultimately work if only through sheer dint of persistence, until there are no more leaks.
That said, the US market has given new President Obama an unwanted inauguration gift with a 20 per cent plunge in the Dow Jones Index since he took office.
Asian markets were all in the red, with the Nikkei the worst down 3.7% and Hang Seng down 1.3%.
The benchmark S&P/ASX200 index ended the day 1.3% lower, or 43 points, at 3145.5.
BHP Billiton (ASX:BHP) fell 64 cents, or 2.3%, to $27.73, Rio Tinto (ASX:RIO) was up 10 cents, or 0.2%, at $45.85, Fortescue Metals (ASX:FMG)was down 1 cent, or 0.4%, at $2.51 and Mirabela Nickel (ASX:MBN)was up 9 cents, to $1.25.
Lihir Gold (ASX:LGL) recovered 13 cents, or 4.3%, to $3.13 after suffering a big fall yesterday when it came out of a trading halt and Newcrest Mining (ASX:NCM) was up 24 cents, or 4%, at $6.32.
Santos (ASX:STO) was up 39 cents, or 2.7%, at $15.07and Woodside Petroleum (ASX:WPL) was down 23 cents, or 0.7%, at $33.97.
Macarthur Coal (ASX:MCC) was up 3 cents, or 1.1%, to $2.65, Centennial Coal (ASX:CEY) was up 3.5 cents, at $1.675, Arrow Energy (ASX:AOE) was up 1 cents, at $2.45 and Riversdale Coal (ASX:RIV)was up 7 cents, at $3.27.
ANZ Bank (ASX:ANZ) lost 11 cents, or 0.9%, to $12.54, after announcing a settlement with Opes Prime creditors, Commonwealth Bank (ASX:CBA)was down 33 cents, or 1.2%, to $27.00 NAB (ASX:NAB) was up 3 cents, at $16.80 Westpac (ASX:WBC) was down 9 cents, at $15.80 and Macquarie Group (ASX:MQG) was hammered losing 84 cents, or 4.6%, at $17.26.
Retailer Harvey Norman (ASX:HVN) was up 4 cents, at $2.08 and media group News Corp (ASX:NWS) lost 11 cents, at $9.70.
The Australian dollar was trading well down to 64.25 US cents.
