Australian Stock Market Report – Afternoon September 16, 2014

A metal sculpture depicting a stock exchange chart is seen in the reception hall of the Athens Bourse in Athens September 11, 2014. Greece on Thursday set the pricing on its offer to top up its recent three- and five-year bonds by about 1 billion euros (US$1.3 billion) and exchange them for outstanding T-bills instead of cash. REUTERS/Yorgos Karahalis (GREECE - Tags: POLITICS BUSINESS)

Losses worsened this afternoon locally

 The local market extended its losses in the second half of trade, with the All Ordinaries Index (XAO) down 0.5 per cent or 29.2pts to 5446.2. The miners ended modestly firmer; however the improvements lessened this afternoon while falls from the big banks held the market back most. Australian shares have fallen for five consecutive sessions while yesterday was the worst day in five weeks for local stocks.

 Economic data out on Saturday showed that China's economy isn't shooting the lights out. Industrial production, retail sales and investment all missed the market's forecasts. This was a major reason for yesterday's local market weakness.

 The S&P/ASX 200 Financials Index (measure of market performance of banks and related companies) fell by 0.6 per cent. Losses from the four major banks accounted for around a third of the market's losses today. Commonwealth Bank (CBA) failed to hold onto earlier gains, falling by 0.9 per cent. ANZ Banking Group (ANZ), Westpac (WBC) and National Bank (NAB) fell by between 0.5 per cent and 0.8 per cent.

 The mining sector was the lone industry to keep its head above water. The S&P/ASX 200 Materials Index (a measure of mining stock moves) finished largely unchanged. Australia's biggest miner BHP Billiton (BHP) and Rio Tinto (RIO) rose by 0.5 per cent, helping to minimise the market's losses.

 Telstra (TLS) slumped by 1.1 per cent and finished at $5.43 per share; 5.6 per cent below pre-ex dividend highs hit on 26 August.

 The Australian dollar has fallen below US90c with soft Chinese data on Saturday and a strengthening greenback keeping pressure on the local currency.

 By the close, 2.09bn shares were traded worth $5.76bn. 367 stocks finished up, 614 down and 351 in the red.

 Tonight, a report on economic sentiment will be out in Germany. Business inflation will be out tonight for August while the FOMC's two day meeting kicks off tonight in the US.

 Plenty to focus on for the rest of the week internationally including a two day meeting of the US central bank which kicks off tonight, Scotland's Referendum for independence this Thursday night (polls close at 10pm AEST), the listing of Chinese tech giant Alibaba which is expected this week and G20 meetings on Saturday. Alibaba is expected to be one of the largest Initial Public Offerings (IPOs) in market history with around US$22bn expected to be raised from the market.

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