Aussie stocks tumbled 2.1 percent in afternoon trade as the RBA held interest rates steady at 2 percent, extending losses off the back of weak manufacturing data from China.
China's official manufacturing guage fell to its lowest reading in three years at 49.7, exacerbating concerns of a Chinese slowdown. The PBOC has initiated five interest-rate cuts since November. In today's RBA statement, Governor Glenn Stevens acknowledged further softening in conditions in China and east Asia.
Strength came from banking stocks today. Energy names also experienced a positive day, as the resources sector tracked a surge in oil prices. But these gains were unable to offset session losses.
The S&P/ASX 200 index closed 111 points down to finish at 5,096.
The value of trades was $6 billion on volume of 955 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Commonwealth Bank of Australia
(ASX:CBA) and ANZ Banking Group
(ASX:ANZ)
On the futures market the SPI is 107 points down.
Economic news
The Australian Bureau of Statistics recorded a 4.2 percent boost in new building approvals issued in July, beating expectations.
Meanwhile Australia's current account deficit widened 41 percent from the first quarter to a seasonally adjusted $19 billion in June, marking its biggest gap since 2009.
Company news
CI Resources Limited
(ASX:CII) has announced two new appointments in an effort to pursue its growth across a diversified industrial portfolio. The metals and mining company declared Mr Lip Sin Tee as an Executive Director and former Phosphate Resources staffer Mr Darren Gold as Group CFO. Both appointments will come into effect from 1 September 2015. Shares in CI Resources last traded at $1.10.
Wollongong Coal
(ASX:WLC) has announced it will be suspending operations at its Russell Vale Colliery mine, cutting approximately 80 jobs. The closure comes amidst difficult operating and financial conditions. The miner reported an almost $200 million loss in the year to March 31 2015. Shares in Wollongong Coal have been suspended from trade since 1 June 2015 for failing to meet its reporting obligations. They last traded at $0.02.
Myer Holdings Limited
(ASX:MYR) has announced its full year results for 2015, recording a near 70 per cent slide in statutory net profit to $29.8 million.
Atlas Iron Limited
(ASX:AGO) has made a series of executive changes as part of its ongoing strategy to reduce costs, introducing Mark Hancock as CFO and Ken Brisden as Non-Executive Director.
BC Iron Limited
(ASX:BCI) has corrected its net loss to $18.2 million for the year ended 30 June 2015.
OceanaGold Corporation
(ASX:OGC) has announced its production guidance for the Waihi gold mine in the second half of 2015 will be within the range of 65,000 to 70,000 ounces of gold.
Best and worst performers
All major sectors traded lower today. The sector with the least losses was Industrials losing 0.8 per cent to close at 4,535. The worst performing sector was Financials excluding REITs, losing 2.6 per cent to close at 6,655 points.
The best performing stock in the S&P/ASX 200 was Pacific Brands Limited
(ASX:PBG) , rising 10.08 per cent to close at $0.66. Shares in Evolution Mining
(ASX:EVN) and Qantas Airways Limited
(ASX:QAN) also closed higher.
The worst performing stock was Western Areas Limited
(ASX:WSA), dropping 10.51 per cent to close at $2.47. Shares in Senex Energy Ltd
(ASX:SXY) and Perpetual Limited
(ASX:PPT) also closed lower.
Commodities and the dollar
Gold is trading at $US1,143 an ounce.
Light crude is $2.94 up at $US48.16 a barrel
The Australian dollar is buying $US0.7117
