After opening sharply lower the market steadied around noon. It closed down 2.27 per cent, with resources stocks and the banks dragging it down.
The S&P/ASX200 Index closed 101 points lower at 4,333. On the futures market, the SPI is down 109 points.
Economic news
The latest ABS Retail Trade figures show that Australian retail turnover fell 0.1 per cent in June, seasonally adjusted, following a fall of 0.6 per cent the previous month.
The trend estimate of the balance on goods and services was a surplus of $1,940 million in June, a rise of $128 million on the surplus in May.
The Australian Federal Chamber of Automotive Industries estimates that sales of new vehicles jumped 11.3 per cent in seasonally adjusted terms in July.
Company news
Fortescue Metals Group Limited (ASX:FMG) said it's profit margin for iron ore was $US100 a tonne, for the current quarter. Shares in Fortescue Metals Group Limited (ASX:FMG) dropped 4.02 per cent to close at $6.21.
And Lynas Corporation Limited (ASX:LYC) said it is running ahead of design plans with recoveries of rare earths at its recently commissioned Mount Weld concentrator. The news came three weeks after the company said its Malaysian subsidiary was to inject up to $US210 million to ramp up construction at its planned Malaysian refinery. Shares in Lynas Corporation Limited (ASX:LYC) lost 2.82 per cent to close at $2.07.
Macquarie Group (ASX:MQG) annonuced it has added to its investment banking business in the US with two senior appointments today. The Group’s price close down by more than four per cent.
After recovering some ground following the News of the World scandal, News Corporation Limited (ASX:NWS) shares dipped today on the back of weak spending data. The company’s shares hit a low of $14.25 today. Meanwhile, Julia Gillard had a private meeting with editors from Rupert Murdoch’s News Limited newspapers yesterday, but she refused to tell reporters exactly what it was about.
Atlas Iron Limited (ASX:AGO) has lashed out against media reports today that said it was eyeing off the possibility of more rail links. It released a statement to the ASX at lunchtime saying no agreement has been reached on the provision of a third party rail, and if it should enter into an agreement, it will let the market know immediately.
And BHP (ASX:BHP) was downgraded to neutral from outperform by Credit Suisse after taking into account its US$12.1billion bid for Petrohawk Energy.
Sectors and stocks
The best performing sector was the telco sector with the index down 10 points to close at 1,027. The worst performing sector was industrials, falling 99 points to close at 3,428.
The best performing stock in the S&P/ASX200 was Medusa (ASX:MML), its shares rising 2.93 per cent to close at $7.38. Shares in AlacerGold (ASX:AQG) and Perseus (ASX:CPL) also closed in positive territory today.
The worst performing stock was Gunns (ASX:GNS) shedding 12 per cent to close at 22 cents. Shares in Linc Energy (ASX:LNC) and Navitas (ASX:NVT) also closed weaker today.
Commodities
Gold is trading at $US1,662 an ounce and Light crude is 43 cents weaker at $US93.36 a barrel.
