THE share market has opened lower, taking its cues from a negative finish on Wall Street and led by the weak performance of financial stocks.
At 10.15am AEDT, the benchmark S&P/ASX200 index was down 35.2 points, or 0.78 per cent, at 4486.2 points, while the broader All Ordinaries index had fallen 34.2 points, or 0.75 per cent, to 4504.6 points.
Shares in investment bank Macquarie Group fell sharply after the bank issued a trading update today, saying it expected second half profit to be broadly in line with the first half, taking the fiscal 2010 result to about $960 million after $871 million in fiscal 2009.
At 10.17am AEDT, Macquarie shares had fallen $3.16, or 6.28 per cent, to $47.19, after touching a low of $47.10.
The major retail banks also were weaker.
ANZ had fallen 27 cents to $20.70, CBA was down 58 cents at $52.19, NAB was 30 cents weaker at $25.17, and Westpac had slipped 34 cents to $22.91.
Start of sidebar. Skip to end of sidebar.
End of sidebar. Return to start of sidebar.
In New York overnight the Dow Jones Industrial Average closed down 1.04 per cent to finish below 10,000 points for the first time since November 4.
The S&P500 index ended 0.89 per cent lower and the NASDAQ finished 0.70 per cent weaker.
Wall Street had traded in a tight range for most of the session, but fell away sharply late in the afternoon.
Cameron Securities client adviser Adrian Leppinus said financial stocks were dragging the market lower at the open, with the Macquarie trading update disappointing the market.
"The market was probably looking for a little bit more in that one," Mr Leppinus said.
"I think that's weighing a bit on the index and the rest of the banks are all a bit lower.
"All the financials, in particular Macquarie, have been the big losers today."
Mining stocks were lower, too.
At 10.35am AEDT, BHP Billiton was down 18 cents, or 0.45 per cent, at $39.42, while Rio Tinto had slipped 78 cents, or 1.16 per cent, to $66.40.
Fortescue Metals also was lower, slipping seven cents, or 1.54 per cent, to $4.49.
At 10.36am AEDT, the spot price of gold in Sydney was $US1,063.10 per fine ounce, down $US3.36 from Monday's close of $US1,066.46.
Gold miner Lihir was up two cents at $2.81 and Newcrest had risen seven cents to $31.59.
But Newmont was 16 cents weaker, by 3.04 per cent, at $5.10.
Retailers were outperforming the broader market today, with department store David Jones up six cents, or 1.3 per cent, at $4.67 at 10.50am AEDT.
David Jones reported today that first half sales had increased by 2.3 per cent, also sharply raising its interim and second half profit guidance.
Rival retailer Myer was up, too, by eight cents, or 2.51 per cent, at $3.27, while JB Hi-Fi climbed 42 cents, or 2.2 per cent, to $19.49.
Mr Leppinus said the David Jones result was a "good number".
"It's a bit better quality than the Myer numbers that came out," Mr Leppinus said.
"While it is a similar business, David Jones seems to do things a little bit better.
"Their margins were improving, which is a good sign."
In other news, software group Reckon reported a 20 per cent increase in annual net profit and announced a share buy back.
At 10.54am AEDT, Reckon shares were up seven cents, or 3.78 per cent, at $1.92.
Hearing implant company Cochlear said it expected net profit for fiscal 2010 to grow at least 15 per cent above its 2009 result after recording an eight per cent lift in first half net profit.
At 10.55am AEDT, Cochlear shares were up $2.42, or 3.94 per cent, at $63.81.
Mr Leppinus said he expected the market to trade nervously for most of the session.
"I wouldn't be surprised if we end down (by) at least this (current level) or possibly a little bit more," Mr Leppinus said.
"No one really wants to pop their head up too much."
Banks lead market higherFirst Horizon closes down equity research
