The Australian sharemarket has pulled back for the second day this week with the energy sector by far the market's biggest drag. The S&P/ASX 200 index fell 0.8pct or 37.7pts to 4740.7. The broader All Ordinaries index (XAO) pulled back 0.7pct or 34.5pts to 4820.8.

Australia's second largest oil and gas producer, Woodside Petroleum (WPL) fell 6.26pct or $2.87 to $42.99 after Royal Dutch Shell sold off about a third of its stake in WPL. This effectively reduced Shell's stake in WPL by 10pct to just over 24pct. Diversified oil and gas company, Oilsearch (OSH) has also fallen by 4.32pct or 30cents to $6.64.

The miners pulled back by around 0.5pct as a sector with the country's two largest miners easing by at least 0.4pct. Some of the smaller miners on the other hand performed quite strongly. The price of gold is going from strength to strength and continues to set new highs and currently buys just over US$1411/ounce. Australia's largest gold producer, Newcrest Mining (NCM) gained 1.78pct or 76cents to $43.41.

Australia's largest airline, Qantas Airways (QAN) is still uncovering issues with its A380 fleet. QAN's six A380 aircraft are expected to be out of action for at least another 72 hours. QAN shares fell 1.79pct or 5cents to $2.75.

On the economic front today, NAB's business survey was released and eased from +10.1 to +8.1 in October. Although a reading above 0 does indicate improving conditions, the index has fallen for the last 7 out of 8 months and has hit a 15 month low. Commsec's Chief Economist, Craig James said that "It is clear that the conservative spending attitudes of consumers are affecting Corporate Australia as well. The NAB Business survey has reaffirmed that confidence levels are easing while business conditions are far from rosy. In fact business conditions are now holding at the lowest levels in 15-months. The sluggish retail activity and impact of the stronger Australian dollar has added to the weaker trading environment."

The Mid Year Economic and Fiscal Outlook (MYEFO) was also released today. Mr James commented by saying that "The latest Government forecasts are certainly more optimistic about the longer term outlook for the economy. Federal Treasury has largely tinkered with its budget forecasts and economic assumptions rather than make major surgery. Treasury still believes that the budget is on track to surplus in just under three years time, but given that the shortfall in the year to September is just over $63 billion, it's clear that it has some work to do. Still, there is some comfort in the fact that Treasury is very conservative, tending to under-estimate budget surpluses"

The Australian dollar is trading around 28 year highs and currently buys US$1.01.

Volume of shares traded came in at 2.87 billion shares worth a very significant $10.39 billion. 549 shares were up, 578 finished weaker and 357 ended unchanged.

At 4.30pm AEST on the Sydney Futures Exchange, the Share Price Index futures contract (SPI) is down 1.12pct or 54pts to 4752.

Dow Jones futures are currently pointing to another slightly weaker start when the U.S markets open at 1.30am AEDT)

In the U.S, wholesale inventories is released.