ASX heads south, takes Wall St cue

The Australian share market has opened lower, taking its cues from a negative finish on Wall Street and led by the weak performance of financial stocks.

At 1015 AEDT, the benchmark S&P/ASX200 index was down 35.2 points, or 0.78 per cent, at 4,486.2 points, while the broader All Ordinaries index had fallen 34.2 points, or 0.75 per cent, to 4,504.6 points.

On the Sydney Futures Exchange, the March share price index contract was 22 points lower at 4,451, on volume of 6,687 contracts.

Shares in investment bank Macquarie Group fell sharply after the bank issued a trading update on Tuesday, saying it expected second half profit to be broadly in line with the first half, taking the fiscal 2010 result to about $960 million after $871 million in fiscal 2009.

At 1017 AEDT, Macquarie shares had fallen $3.16, or 6.28 per cent, to $47.19, after touching a low of $47.10.

The major retail banks also were weaker.

ANZ had fallen 27 cents to $20.70, CBA was down 58 cents at $52.19, NAB was 30 cents weaker at $25.17, and Westpac had slipped 34 cents to $22.91.

In New York on Monday, the Dow Jones Industrial Average closed down 1.04 per cent to finish below 10,000 points for the first time since November 4.

The S&P500 index ended 0.89 per cent lower and the NASDAQ finished 0.70 per cent weaker.

Wall Street had traded in a tight range for most of the session, but fell away sharply late in the afternoon.

Cameron Securities client adviser Adrian Leppinus said financial stocks were dragging the market lower at the open, with the Macquarie trading update disappointing the market.

``The market was probably looking for a little bit more in that one,'' Mr Leppinus said.

``I think that's weighing a bit on the index and the rest of the banks are all a bit lower.

``All the financials, in particular Macquarie, have been the big losers today.''

Mining stocks were lower, too.

At 1035 AEDT, BHP Billiton was down 18 cents, or 0.45 per cent, at $39.42, while Rio Tinto had slipped 78 cents, or 1.16 per cent, to $66.40.

Fortescue Metals also was lower, slipping seven cents, or 1.54 per cent, to $4.49.

At 1036 AEDT, the spot price of gold in Sydney was $US1,063.10 per fine ounce, down $US3.36 from Monday's close of $US1,066.46.

Gold miner Lihir was up two cents at $2.81 and Newcrest had risen seven cents to $31.59.

But Newmont was 16 cents weaker, by 3.04 per cent, at $5.10.

- AAP