Australian shares flat, market subdued ahead of RBA outcome

Australian shares flat, market subdued ahead of RBA outcome
Business & Markets 2013
Written by Reuters
Tuesday, 04 June 2013 08:38


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SYDNEY (June 4): Australian shares were flat on Tuesday morning, as gains in mining firms were offset by losses in the financials sector amid subdued activity ahead of the outcome of the Reserve Bank's policy meeting later in the day.

BHP Billiton Ltd tacked on 0.6 percent while rival Rio Tinto Ltd jumped 1.8 percent after copper climbed on Monday to a more than-one week high.

Banks were moderately weaker. Westpac Banking Corp slipped 0.6 percent while top lender the Commonwealth Bank of Australia fell 0.3 percent.

The S&P/ASX 200 index fell 2.7 points to 4,885.6 by 0013 GMT. It fell 0.8 percent to its lowest close in four months on Monday, hurt by weak factory activity data in China, Australia's major export market.

The benchmark has been hit recently by concerns over slowing growth in China, jitters the Federal Reserve will wind back its stimulus this year and turbulence in Japanese equities.

While the Fed stimulus jitters have eased somewhat, uncertainty over when the central bank may roll back the bond-buying scheme continues to buffet markets.

U.S. stocks rose on Monday as weaker-than-expected factory activity supported views the Federal Reserve will keep economic stimulus in place.

The Reserve Bank of Australia holds its monthly policy meeting later on Tuesday and has been expected to keep rates at 2.75 percent following a quarter-point cut in May.

Markets are still only pricing in a minor 16 percent chance of a move today with the decision due at 1630 GMT.

New Zealand's benchmark NZX 50 index slipped 0.2 percent or 7.7 points to 4,503.6. - Reuters

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