A mix of unfavourable domestic data as well as weaker global markets played havoc with investor sentiment today, pushing the Australian shares down by more than 2%.
The benchmark S&P/ASX 200 Index fell 122 points (or 2.3%) to 5135.90, while the broader All Ordinaries slid 118 points (or 2.2%) to 5215.70.
Lower unemployment figures of 4% as released by a government survey today prompted media speculation about inflationary pressures and further interest rates hikes.
The financials, as expected, were the biggest source of worry with investors running for the hills. The big four banks were all down – Commonwealth Bank fell $2.32 to $39.50, ANZ lost 58 cents to $21.47, Westpac shed 62 cents to $22.64, and National Australia Bank was down $1.08 to $27.27.
Australia’s top investment bank, Macquarie Group also fell, down $4,24 or 8.4% to $46.25.
Insurance companies also fell – QBE was down 55 cents to $20.75, AMP slipped 41 cents to $6.85 and AXA Asia Pacific lost 33 cents to $5.11.
In commodities, oil was the talk of the day after crude oil prices hit a record high of $110 a barrel in New York overnight.
Oil producer AED Oil rose 3.9% or 7.5 cents to $1.97. It was helped by the announcement of $1.2 million in net profit for the half year to end of December.
In New York, gold futures traded at US$985.70 an ounce as at 4.17 AEDT, up by US$5.20.
Copper was also buoyed overnight, with LME Copper Futures closing at $US8497 a tonne, up US$142.
New Zealand’s benchmark NZX-50 index rose 0.8 percent, or 29.81 points, to 3,573.91.
