The Australian share market suffered a widespread sell-off today to finish firmly in the red.
Mining stocks led the declines on the back of plunging US and European markets overnight after investors were rattled by credit ratings downgrades for Greece and Portugal.
And economists are forecasting another interest rate rise next week following higher-than-expected inflation figures for the March quarter.
The S&P/ASX 200 Index finished 57 points lower at 4,823, while on the futures market, the SPI200’s down 59.
To company news around this afternoon: Macarthur Coal Ltd (ASX:MCC) says third quarter coal sales from its Queensland mines are 1.23 million tonnes, up 50% on the same period a year before when the global financial crisis triggered a slump in demand. The miner says demand for metallurgical coals like its low volatile PCI continued to strengthen during the quarter thanks to a recovery in international steel markets, growth in Chinese imports and supply constraints due to weather impacts. Total production from the company’s mines for the quarter was up 13.9% on year to 1.18 million tonnes. Meanwhile, the miner has given no new details on the status of the $4.07 billion takeover offer from Peabody Energy, which has until May 3 to carry out due diligence for its bid. Shares in Macarthur Coal closed 0.87% lower at $15.90.
Virgin Blue Ltd (ASX:VBA) and Air New Zealand are in talks to form an alliance for the highly competitive trans-Tasman market. The news comes seven years after Qantas attempted to buy up to 25% of Air New Zealand in 2002, but was knocked back by the competition regulator. The two airlines issued brief statements to the ASX this afternoon confirming they had been in talks for several months about commercial co-operation on trans-Tasman markets, but had not yet reached an agreement. Virgin Blue shares closed 0.86% higher at $0.585.
Also making news: ROC Oil Co Ltd (ASX:ROC) has reported an 11% increase in production for the first quarter, compared to the previous three months, to 780,034 barrels of oil equivalent. But the result is down 32% on the same period a year ago.
Exploration has started at Azure Minerals Ltd (ASX:AZS) San Eduardo project in Mexico following a deal with Oz Minerals last month. Oz Minerals has agreed to spend over $3 million exploring the site in order to earn an initial 51% stake in the project. Global iron ore miner BHP Billiton Ltd (ASX:BHP) is to develop a new coal terminal at Abbot Point in Queensland after being named the preferred bidder by the state government.
And high-end retailer David Jones Ltd (ASX:DJS) is to stock surf labels Quiksilver and Roxy in stores in what it calls a market changing deal.
In the best and worst performers: The best performing sector at close was the Health Care index, up 40 points at 8,474. The worst performing sector was the Utilities index; down 102 points at 4,376.
The best performing stock in the S&P/ ASX200 was Nufarm, shares rose 3.06% to $7.40. Shares in CSL and Hastie Group also closed higher.
The worst performing stock was Murchison Metals, shares fell 9.59% to $2.45. Shares in Eastern Star Gas and Cudeco also closed weaker today.
In commodities, gold is trading at $1,165.40 U.S an ounce and light crude is down $0.16 at $82.28 U.S a barrel.
