Aussie market opens flat with banking stocks under pressure

The Australian shares have opened flat on Wednesday, with financial stocks the main weight on the market.

At 10:30 (AEST), the benchmark S&P/ASX 200 index was fractionally up 0.07 points or 4.60 percent at 6,475.80, while the broader All Ordinaries index rose 0.09 points or 6.00 percent at 6,571.60.

“In ominous moves bonds and gold rallied again overnight, despite gains for European shares and oil,” CMC Markets’ chief market strategist Michael McCarthy told investors in a morning note.

“The market action indicates overall expectations of continuing central bank support due to lower growth.”

Meanwhile, U.S. ten-year bonds traded down to 1.47 percent, the lowest level in three years and just 16 basis points above the all-time low.

According to McCarthy, this points to a mixed day for Asia Pacific stocks.

In the financial space, Australia’s big banks struggled with the Commonwealth Bank down (0.80 percent), Westpac Bank down (0.29 percent), National Australia Bank down (1.10 percent) and ANZ down (0.78 percent).

Mining stocks were mostly higher with BHP up (0.50 percent), Rio Tinto up (0.60 percent), Fortescue Metals down (1.85 percent) and gold miner Newcrest was up (2.65 percent).

The country’s oil and gas producers made gains with Woodside Petroleum up (0.48 percent), Santos up (0.29 percent), however Oil Search remained unchanged (0.00 percent).

Australia’s largest supermarket chains saw mixed results with Wesfarmers down (0.26 percent) and Woolworths up (1.17 percent).

While telecommunications giant Telstra slumped (1.87 percent), the national carrier Qantas nose-dived (1.32 percent) and biomedical firm CSL slid (0.21 percent).