Aussie sharemarket down over U.S. concerns
New concerns over the strength of the U.S. economy wiped about $27.5 billion off Australian share prices Monday.
Stocks slumped by 2 percent in the morning session in the wake of warnings that the U.S. housing slump was spreading to the wider economy. The market closed 1.9 percent lower with the All Ordinaries Index shedding 131 points to 6,592 and the ASX 200 lost 120 points and finished at 6,577.
Stocks exposed to the U.S. economy fared worst -- Macquarie Bank gave up $2.95 to $70.79 with the other major banks dropping 11 to 50 cents a share.
James Hardie Industries fell 2.5 percent to $6.21.
The airline Qantas closed down 14 cents to $5.33 after it announced it was buying new aircraft.
Miners also fell, Rio Tinto down 3.7 percent and BHP Billiton lost $1.04 to $40.80.
Investors also worried about the release Wednesday od the latest Consumer Price Index after the Producer Price Index, the main measure of business inflation, rose by 1.1 percent in the three months to September -- mainly due to higher construction costs and increased food prices.
The Australian dollar on Monday dropped to 88.95 cents, 101 Japanese yen, 43 British pence and 62 euro cents.
Oil prices remained high with West Texas crude trading at $88.58 a barrel and spot gold fetched $760 an ounce. // Copyright 2007 by United Press International
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