Australian Home Loans Rises 0.3%, Banks Lead Indexes Lower on Greek Turmoil

Marcus Jacob
10 Dec, 2014
New York City

Australian market indexes opened lower on a weakness in banks and resource sector after Greek political turmoil lowered market indexes in Europe. Seasonally adjusted new home loans in Australia increased 0.3% to nearly 52,000 in October.

[R]5:30 PM Sydney – Australian market indexes opened lower on a weakness in banks and resource sector after Greek political turmoil lowered market indexes in Europe. Seasonally adjusted new home loans in Australia increased 0.3% to nearly 52,000 in October.[/R]

Stocks in Sydney opened lower after another day of weak oil and gold prices in international markets and the political turmoil in Greece dragged European markets by more than 1%.

In addition, prices of base and precious metals and iron ore took another hit after China signalled lower economic growth and slower urban expansion.

In domestic economic news according to a private survey, The Westpac-Melbourne Institute''s consumer sentiment index declined 5.7% in December to a 40-month low of 91.1 from 1.9% increase in November to 96.6.

Westpac revised its interest rate forecast and estimated rate setting committee at Reserve Bank at the next meeting on February 3 to cut rate by 0.25% and additional cut by the same amount in March.

Separately, Australian Bureau of Statistics said seasonally adjusted number of new home loans granted in October increased 0.3% to 51,720 from the previous month.

Australian dollar closed at 83.14 U.S. cents and in stock-trading turnover slumped to 785 million shares worth $5.02 billion.

ASX 200 Index slipped 23.70 or 0.4% to 5,259 and broader All Ordinaries Index fell 21.20 to 5,237.10.

In commodities trading, gold climbed US$31 to US$1,232 an ounce and light crude oil gained 77 cents to US$63.82 a barrel.

Australian Stock Movers

APA Group closed unchanged at $7.97 after the natural gas infrastructure developer agreed to acquire 543 kilometer pipeline links in Queensland from the U.K.-based BG Group Plc for about $5 billion or £3.2 billion to expand its east cost pipeline network.

The transaction is expected to close in the first-half of 2015.

Charter Hall Retail REIT gained 0.7% to $4.11 after the real estate developer agreed to acquire former Brickworks site in Adelaide for $7.55 million from Woolworths Limited.

Fortescue Metals Group Limited rose 0.4% to $2.56 after the iron ore explorer and producer plans to sell some of its assets amid declining of iron ore prices. But the world''s fourth-biggest iron ore miner said that the company is not in hurry to sell assets.

Woodside Petroleum Limited increased 1.5% to $34.90 after the crude prices rebounded from a five-year low after Conoco Phillips, Chevron and several other smaller U.S. companies announced a cut in exploration investment in 2015.