In overnight trade, global markets plummeted after Italy’s borrowing costs rose to a fresh euro-era record at a bond auction. News of the surge in Italian bond yields pushed the troubled euro below $US1.30 for the first time since January.
Meanwhile, there were more concerns of a dip in China’s growth with the People’s Bank of China warning mainland lending slowed in November and money supply grew the least in a decade.
Australian stocks followed its overseas counterparts into negative territory with the S&P/ASX 200 index closing 50.7 points lower at 4139.80 points. The All Ordinaries ended 52 points lower at 4197.80 points.
Miners were bobbing around in a sea of red on the Final Call watchlist today. BHP Billiton shed 1.8% to $35.06, Rio Tinto fell 2.8% to $61.40 while Fortescue Metals Group sank 3.4% to $4.53.
Sandfire Resources bucked the downward trend to make the only gains on the Final Call watchlist after selling the balance of the high-grade direct shipping ore from its DeGrussa copper-gold project in Western Australia after striking a deal with Yunnan Copper Corporation.
Sandfire finished 2% higher at $6.72.
Gold stocks took a hammering after the spot gold price fell for a fourth consecutive session to below $US1600 an ounce after the US dollar surged to an 11-month high against the euro.
At 4.20pm AEDT, spot gold was trading $1.28 lower at $1572.62 an ounce.
Newcrest Mining fell 2.9% to $30.88, Medusa Mining fell 1.2% to $4.87, Alacer Gold was down 3.5% to $10.19, Eldorado Gold lost 4% to $14.90, Perseus Mining plunged 5.6% to $2.54 and Kingsgate Consolidated shed 5.6% to $5.95.
“People are fearful of everything that’s going on, so once something starts selling off, selling begets selling,” First Eagle Investment Management portfolio manager Rachel Benepe told Bloomberg.
“The safe haven of choice continues to be the US dollar.”
Base metals on the London Metal Exchange staged a very slight rebound in afternoon trade following last night’s big losses.
Copper for three-month delivery was trading 0.35% higher at $US7235 per tonne, zinc added 1.1% to $1865.25/t while nickel climbed 0.2% to $17,435/t.
- with Bloomberg
