Australian Stock Market Report – Afternoon January 14, 2015

Australian shares are slipping at lunch, with the ASX 200 Index down 0.7 per cent following weaker commodity prices and the biggest tumble since early January in the US overnight. The ASX 200 was down by more than 1.2 per cent earlier in the day. IN PHOTO: Australian shares are slipping for the third time this week with the ASX 200 Index down 0.4 per cent at lunch. Revisions to China’s growth targets for the year ahead has been a drag on the mining sector in early trade. A television journalist looks at a display board shortly after the local market opened at the Australian Stock Exchange in Sydney August 5, 2011. Australian stocks sank over 4 percent in opening trade on Friday, after worries about European sovereign debt and weakness in the U.S. economy hammered stock markets from Europe to Wall Street. Reuters/Tim Wimborne

A television journalist looks at a display board shortly after the local market opened at the Australian Stock Exchange in Sydney August 5, 2011. Australian stocks sank over 4 percent in opening trade on Friday, after worries about European sovereign debt and weakness in the U.S. economy hammered stock markets from Europe to Wall Street. REUTERS/Tim Wimborne (AUSTRALIA - Tags: BUSINESS)

Market slumps for third straight day

 Australian shares faded this afternoon to post the biggest tumble in a week, with the ASX 200 Index (XJO) slumping by 0.9 percent to 5353. The local market has now fallen for three consecutive days - with equities dragged lower by weaker commodity prices and a negative lead from Wall Street.

 The Materials sector was the biggest drag on the market, dropping 2.6 percent on lower base metals and iron ore prices. Rio Tinto (RIO) sank 3.3 percent to $55.54, while Fortescue Metals (FMG) plunged 8.2 percent to $2.34.

 The Energy sector though bucked the trend, closing stronger for the first time this week, despite world oil prices falling to fresh 6-year lows overnight. Oil Search (OSH) gained 0.8 percent to $7.20, while Santos (STO) climbed 2.1 percent to $7.36.

 In economic news, total lending finance fell by 1.9 percent in November - the third fall in four months. Total lending in November stood at a 12-month low of $64.8 billion, up just 1.2 per cent on a year ago. While data also out today showed that job vacancies rose by 2.6 percent to a 2-year high of 150,400 in the three months to November. Job vacancies are up 8.0 percent on a year ago.

 Tonight will busy across global markets. The European Court of Justice will hand down its ruling on the legality of Europe's stimulus measures in Brussels. In the US, retail trade, an update on crude oil inventories and trade data will be issued. Anecdotal evidence provided by the 12 Federal Reserve banks relating to economic conditions will be released at 6am AEDT.

 Looking further ahead, tomorrow's monthly employment data is the highlight. Economists are expecting 5,300 jobs to have been created in December and the jobless rate to remain steady at 6.3 percent.

 The Aussie dollar is weakened against the greenback, to trade at 80.97 US cents.

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