The Australian market weakened Monday as a fall in commodity prices dragged resource stocks lower. This easily outweighed better than expected employment data released out of the US on Friday.
The head of the World Trade Organisation said global trade is likely to drop by more than 10% this year.
In employment news, reflecting the decline in the US unemployment rate from 10.2% to 10%, jobs ads in Australia were up 5.2% in October and 12.3% higher than their 2009 lows recorded in July.
Meanwhile, according to the Australian Industry Group (AI)/Housing Industry Association Performance of Construction Index, construction activity dropped 3.3 points to a level of contraction. The PCI read 47.6 points in November.
At the bell, the All Ords lost 26.0 to 4,695.2, while the ASX/200 fell 25.7 to 4,676.5. About 2.6 billion shares worth around $4.3 billion had changed hands.
The gold miners slumped following a heavy sell-off in gold. Newcrest Mining sank $2.30, or 6% to $36.00, while Lihir Gold dropped 17c, or 4.8% to $3.36.
The Materials and Resources sector shed 1.8%.
BHP Billiton retreated 79c to $40.61, and Rio Tinto eased 26c to $71.59. The two miners confirmed their West Australian iron ore joint venture.
Fortescue reversed early gains to finish 3c lower at $4.26.
James Hardie added 1.5% to $8.30 on positive sentiment generated from recent housing data out of the US.
Most Energy stocks paced a decline in the price of crude overnight with the sector down 1% overall.
Origin Energy said its share of the purchase price of Woodside Petroleum’s 51.55% interest in the Otway Gas Project would be reduced from $712.5 million to $507.2 million after Benaris International said it would exercise options in the project.
Woodside dipped 80c to $48.30, while Origin put on 2c to $15.73.
Oil Search shed 12c, or 2% to $5.90.
WorleyParsons jumped 3% to $28.01 before announcing an extension to its takeover bid for Evans & Peck Group after the close.
The big four banks were all less than 0.6% below the gain line in direct contrast to them all being above the line at midday. ANZ was the worth performer, down 3c, or 0.1% to $21.95.
The broader Banks and Financials sector edged 0.2% lower.
The insurers were mixed, however 2.6% and 2% gains from AXA Asia Pacific and QBE respectively outweighed losses elsewhere. They were trading at $5.83 and $22.76.
Goodman Group was the bright spot for the Property Trusts sector as Macquarie Group exercised 134 million 30c options its received earlier in 2009. The stock put on 0.5c to 57c.
Westfield shed 10c to $11.70 as the sector was 0.5% lower by the close.
Industrial stocks tended downwards despite gains from several junior players.
Qantas and Toll Holdings lost 2.2% and 3%, while Brambles and Leighton edged 2c and 21c higher to $6.39 and $37.17.
Boart Longyear was among the gainers, putting on 0.5c to 31.5c.
The sector lost 0.3%.
The Consumer Discretionary sector was 0.7% above the line, due largely to advances from Billabong, 51c to $11.03, and JB Hi-Fi, 19c to $23.10.
Among media stocks Newscorp set the high water mark, jumping 57c, or 3.8% to $15.72.
The Healthcare sector was among the best performers, climbing 1.2%. Gains were posted by most the majors. CSL rose 20c, or 0.6% to $31.26.
Sonic Healthcare, Cochlear and Resmed posted gains of between 2.6% and 2.9%.
Telstra was 3c higher at $3.45 helping the sector to a 0.7% gain.
Around the region, the Nikkei 225 rose 145.5 to 10,168.0, while the Straits Times Index added 10.9, to 2,802.0. Meanwhile, the NZSE50 lost 7.9 to 3,138.6. The Hang Seng fell 139.3 to 22,358.9.
Spot gold was trading at US$1,156.90 per ounce, and the Aussie was buying US$0.9164.
