Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Australia shares lower after Italy rejects reform in referendum; NZ down

Published 05/12/2016, 12:26 pm
Updated 05/12/2016, 12:30 pm
© Reuters.  Australia shares lower after Italy rejects reform in referendum; NZ down

© Reuters. Australia shares lower after Italy rejects reform in referendum; NZ down

By Suhail Hassan Bhat

Dec 5 (Reuters) - Australian shares fell on Monday, dragged down by financials, while investors assessed the impact on markets impact from Italy's vote against constitutional reform.

Prime Minister Matteo Renzi said he would resign after conceding defeat in a referendum on constitutional reform which exit polls and early projections showed he would lose by a wide margin. and Europe's politicians fear victory for the opposition 'No' camp could cause political instability and renewed turmoil for Italy's banks, pushing the euro zone towards a fresh crisis. S&P/ASX 200 index .AXJO fell 0.9 percent, or 47 points, to 5,397 by 0036 GMT. The benchmark lost 1.16 percent last week.

"While our markets had been anticipating better chances of a 'No' vote than a 'Yes' vote, the Italian referendum gave investors a reason for a sell-off after a strong run-up from the Trump election," said James McGlew, executive director of corporate stock-broking at Argonaut.

"The situation in Italy reinforces just how splintered the EU is at the moment. The risk there is on currencies."

The Reserve Bank of Australia holds its monthly policy meeting on Tuesday. A Reuters poll showed investors expect the central bank to keep its cash rate unchanged. Wall Street, the S&P 500 financial index .SPSY ended down 1 percent on Friday as the worst-performing sector among 11 major S&P sectors. The index has risen 13.1 percent since the Nov. 8 presidential election.

Australia's benchmark financial index .AXFJ . which has gained nearly 10 percent since Nov. 8, was down over 1.2 percent in thin trade, the biggest drag on the overall index. All of the "Big Four" banks dropped by more than 1 percent.

Energy stocks also showed some losses, with the benchmark index .AXEJ falling 1.3 percent, led by Woodside Petroleum WPL.AX which slid nearly 2 percent.

At the other end, DUET Group DUE.AX soared as much as 20 percent to top an eight-year high after Hong Kong's Cheung Kong Infrastructure 1038.HK made a A$7.3 billion ($5.4 billion) approach for the company. gains rippled across the utilities sector, with Spark Infrastructure Group SkI.AX climbing 4.6 percent to a 1-month high.

Gold stocks gains with Newcrest Mining NCM.AX rising 0.4 percent. XAU=

New Zealand's benchmark S&P/NZX 50 index .NZ50 slipped 0.3 percent, or 19.58 points to 6,885.27, weighed down by healthcare and consumer stocks.

Fisher & Paykel Healthcare Corp FPH.NZ fell as much as 3 percent, while Skycity Entertainment Group Ltd SKC.NZ slid 3.3 percent.

For more individual stocks activity click on STXBZ

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.