AFTERNOON REPORT
(4.30pm AEST)

The recent rally on the Australian share market came to an abrupt end today, although the losses weren't overly significant or surprising. US and European markets closed in the red overnight, as investors looked to square their books ahead of the end of the month and end of the September quarter. A lack of concrete and decisive action from European leaders also frustrated investors. The Australian market, which has gained around 4.5pct over the past couple of sessions, lost 0.7pct today. The All Ordinaries Index (XAO) slumped 29.8pts to 4067.9 while the S&P/ASX 200 Index (XJO) fell by 31.2pts to 4008.3.

Markets around the Asian region finished mixed. The Hong Kong share market was closed due to a typhoon which locked down the city. Japan's Nikkei Index rose 0.5pct, while the Shanghai Composite was impacted by a weaker copper price, losing 0.8pct in late trade.

Mining stocks were the worst performers on our market in response to a big fall in the copper price and generally weaker commodities across the board. Shares in index leader BHP Billiton (BHP) fell 1.4pct to $35.04 while Rio Tinto (RIO) was down 2.5pct to $62.45. Aluminium was the best performing metal on the London Metals Exchange overnight and shares in Alumina (AWC) rose 2.8pct to $1.46.

The financial sector ended lower by 0.8pct with shares in the National Australia Bank (NAB) the worst out of the majors. NAB shares fell 2pct to $22.50 while the Commonwealth Bank (CBA) was slightly higher at $45.51.

The energy sector managed a rebound, rising 0.3pct thanks to strong gains from Santos (STO), up 1.9pct and Caltex (CTX), which gained 1.2pct.

The Australian Competition and Consumer Commission (ACCC) today approved the tie-up between Qantas and American Airlines, allowing the partners to co-ordinate trans-Pacific flights. Qantas also announced a 6.7pct increase in passenger numbers for August, year on year. However QAN fell 2.1pct to $1.42 ahead of planned strike action tomorrow which is expected to disrupt the travel plans of 8,500 domestic and international travellers. 39 flights have been delayed and two cancelled, ahead of the AFL and NRL grand finals and during school holidays. Virgin Australia (VBA) closed steady at 31.5c.

Economic data released today showed job vacancies rose 3.3pct to 187,000 in the quarter ending August, suggesting jobs growth could be improving after several months of slowdown. Vacancies for the three months to August were 2.9pct above the same period in 2010.

The Australian dollar picked up some ground following the release of the data. At 11.25am AEST the Aussie was worth US97.22c, while at 4.30pm AEST it was a cent higher at US98.22c. It was also buying £0.6268 and €71.98c.

On the market overall, a total of 1.78 billion shares were traded, worth $4.81 billion. 362 were up, 635 were down and 311 were unchanged.

At 4.30pm AEST on the ASX24, the futures contract was at 4006, down 57 points.

Ahead tonight, German leaders will vote on expanding the scope and size of the EU´s current rescue fund, the European Financial Stability Facility (EFSF). Federal Reserve Chairman Ben Bernanke delivers a speech, while revised June quarter economic growth figures are released and weekly jobless claims data comes out.