MELBOURNE, Jan 18 (Reuters) - Australian stocks were 0.2
percent weaker on Monday, rebounding from early lows as banking
shares advanced on hopes of solid trading results from major
banks.
Financial stocks started lower but turned positive, outperforming their U.S. counterparts after Commonwealth Bank of Australia issued a profit upgrade on Friday, just moments before the market closed.
'Some of that enthusiasm is flowing through to the other banks; (investor) like the net interest margin component,' said Peter Vann, head of investment research at Constellation Capital Management.
U.S. banks were weighed down by steep mortgage and credit card loan losses at JP Morgan Chase & Co, which raised concerns about the health of U.S. banks and pushed Wall Street lower.
'Banks are a lot cleaner and safer here,' Vann noted. 'We'll be waiting for some commentary (in forthcoming trading updates,) on how their interest margin is going in light of all the increased funding costs,' he said.
The benchmark S&P/ASX 200 index fell 8.4 points to 4,891.2 at 2345 GMT, after trading as low as 4,865.6. Last week the index declined 0.3 percent.
New Zealand's benchmark NZX 50 index lost 3.1 points to 3,254.9.
STOCKS ON THE MOVE
* CBA shares rose 0.7 percent to A$58.51 after gaining 2.3 percent Friday. Some analysts said the upgrade had been expected by investors and was reflected in CBA's share price outperformance in recent weeks compared with other top banks.
Australia and New Zealand Banking Group rose 2.1 percent to A$22.89 and top lender National Australia Bank was 0.5 percent firmer at A$27.44.
2343 GMT
* Top miners were weaker on the back of softer commodities prices, with BHP Billiton down 1.1 percent at A$43.16.
2342 GMT
* Lihir Gold rose 0.9 percent to A$3.32 after chief executive Arthur Hood stepped down. He is being replaced on an interim basis by Chief Financial Officer Phil Baker, the company said.
2340 GMT
(Reporting by Victoria Thieberger; Editing by Balazs Koranyi)
((victoria.thieberger@reuters.com; +61 3 9286 1421; Reuters Messaging: victoria.thieberger.reuters.com@reuters.net))
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Financial stocks started lower but turned positive, outperforming their U.S. counterparts after Commonwealth Bank of Australia issued a profit upgrade on Friday, just moments before the market closed.
'Some of that enthusiasm is flowing through to the other banks; (investor) like the net interest margin component,' said Peter Vann, head of investment research at Constellation Capital Management.
U.S. banks were weighed down by steep mortgage and credit card loan losses at JP Morgan Chase & Co, which raised concerns about the health of U.S. banks and pushed Wall Street lower.
'Banks are a lot cleaner and safer here,' Vann noted. 'We'll be waiting for some commentary (in forthcoming trading updates,) on how their interest margin is going in light of all the increased funding costs,' he said.
The benchmark S&P/ASX 200 index fell 8.4 points to 4,891.2 at 2345 GMT, after trading as low as 4,865.6. Last week the index declined 0.3 percent.
New Zealand's benchmark NZX 50 index lost 3.1 points to 3,254.9.
STOCKS ON THE MOVE
* CBA shares rose 0.7 percent to A$58.51 after gaining 2.3 percent Friday. Some analysts said the upgrade had been expected by investors and was reflected in CBA's share price outperformance in recent weeks compared with other top banks.
Australia and New Zealand Banking Group rose 2.1 percent to A$22.89 and top lender National Australia Bank was 0.5 percent firmer at A$27.44.
2343 GMT
* Top miners were weaker on the back of softer commodities prices, with BHP Billiton down 1.1 percent at A$43.16.
2342 GMT
* Lihir Gold rose 0.9 percent to A$3.32 after chief executive Arthur Hood stepped down. He is being replaced on an interim basis by Chief Financial Officer Phil Baker, the company said.
2340 GMT
(Reporting by Victoria Thieberger; Editing by Balazs Koranyi)
((victoria.thieberger@reuters.com; +61 3 9286 1421; Reuters Messaging: victoria.thieberger.reuters.com@reuters.net))
DIARIES & DATA: IPO diary & data Asia earnings diary U.S. earnings diary European diary Australia diary Wall Street Week Ahead Eurostocks Week Ahead ................................................................ For latest top breaking news across all markets ................................................................ TOP NEWS SUMMARIES ON OTHER SUBJECTS | U.S. Companies | European Companies | | Forex | Global Economy | | Tech.Media,Telecoms | Banking, Financials | Politics & General | Sports | ................................................................ MAJOR STOCK MARKET REPORTS New York Weekly outlook New York Pan-Europe Weekly outlook Europe London Weekly outlook London Tokyo ................................................................ ASIA STOCK MARKETS Pan-Asia...................... Bangkok...... Karachi........ S/east Asia. Bombay....... Kuala Lumpur... Sydney/NZ... China........ Seoul.......... Taipei...... Hong Kong.... Singapore...... Tokyo........ ................................................................ Access to some items may depend on subscription level. ................................................................ UP-TO-THE-MINUTE HEADLINES Company results Economic indicators Mergers & acquisitions Interest rates LIVE PRICES & DATA World Stocks Currency rates Dow Jones/NASDAQ Nikkei FTSE 100 Debt HOW TO FIND INFORMATION YOU NEED | | | | | || | | | LIVE PRICES & DATA: World Stocks Currency rates Dow Jones/NASDAQ Nikkei FTSE 100 Debt Australian dollar LME price overview Keywords: MARKETS AUSTRALIA STOCKS (Multimedia versions of Reuters Top News are now available for: * 3000 Xtra : visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News, please visit http://topnews.reuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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