Australian shares finished flat after trading in positive territory for most of the day, as banking stocks followed the downward lead from Wall Street.
The benchmark S&P/ASX200 index was down 3.7 points at 5376.6 points, while the broader All Ordinaries index shed 7.6 points to 5,471.60.
On the Sydney Futures Exchange, the March share price index contract was 42 points lower at 5374 at close.
The Australian Bureau of Statistics released national accounts figures today which showed Australia’s gross domestic product rose by a seasonally adjusted 0.6 per cent in the December quarter.
On the equities markets, shares in Macquarie Group (MQG) fell $1.70 or 3.35% to $49.05 after the investment bank said it would moderate its residential mortgage business due to funding costs.
The four big banks were mixed: ANZ slid 23c to $21.21, Commonwealth Bank shed 23c to $39.77, Westpac lost 37c to $22.37 while National Australia Bank added 60c to $28.10.
Retailers were mixed, despite the retail figures released yesterday by ABS which showed a slowdown in spending.
Shares in fashion retailer Just Group rose 9 cents to $3.56 after the group released positive half year results and a strong outlook.
Other retailers were down, with David Jones falling 9c to $3.93.
JB Hi Fi and competitor Harvey Norman, are considered to be among those retailers which will suffer from the Reserve Bank’s tighter monetary policy and its rising level of interest rates.
JB Hi-Fi was down 24c to $9.79 and Harvey Norman added 7 cents to $4.07.
Overnight, US stocks partly recovered but still ended lower amid talk about the rescue of bond insurer Ambac Financial Group.
The Dow Jones ended the session down 45.1 points, or 0.37 per cent, at 12,213.80.
Mining and resources giant, BHP rose 40 cents to $39.06 and Rio Tinto gained $1.31 to $133.79.
