Australian markets

Australian shares closed marginally weaker despite recovering from earlier lows caused by step falls overnight in commodity prices. The benchmark S&P/ASX200 index was down 10.7 points, or 0.23 per cent, at 4,743 points, while the broader All Ordinaries index was down 12.8 points, or 0.27 per cent, at 4,816.1 points.

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On the ASX 24, the June share price index futures contract was down eight points at 4,744 points, with 41,946 contracts traded. Materials stocks remained the worst performers due to sharp falls in oil, gold and other metal prices in overseas trade overnight. The falls were caused by a rise in the US dollar and disappointing jobs data in the US, which raised concerns about future demand.

BHP Billiton was down 86 cents, or 1.89 per cent, at $44.58 and Rio Tinto was $1.52 lower, or 1.87 per cent, at $79.57. The price of spot gold in Sydney was $1487.60 per fine ounce, down $31.90 from Thursday's close at $1,519.50. In the energy sector, Woodside was down 24 cents ao $45.31. Bank stocks were mixed.

National Australia Bank was up 77 cents at $27.78 and Westpac was up 19 cents at $23.92 as investors digested their earnings results. ANZ fell 35 cents to $23.24 and Commonwealth Bank was four cents lower at $52.63. Preliminary national turnover was $2.89 billion shares worth $6.80 billion, with 607 stocks down, 470 up, and 403 unchanged.

The Australian dollar was lower Friday but finding solid support heading into the European session after the Australian central bank signaled its intent to raise interest in coming months. In early trading, the Aussie was under siege as commodity prices spiraled lower in New York with gold, silver and copper and oil prices all in rapid retreat.

Weaker regional share markets also sapped risk appetite. But the currency market went into rapid reverse after the Reserve Bank of Australia indicated its growing concerns about inflation and set the stage for a rise in interest rates sooner than many had been expecting. The Australian dollar was changing hands at $1.0700, down from $1.0763 late Thursday. It touched a day's low of $1.0532. On Monday, it traded above $1.1000. Against the yen, it was at 86.305, down from 86.335.

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