Banks fail to hold up market - May 10 2005

Gimmy · Member

Banks fail to hold up market
May 10 13:21
AAP

The Australian sharemarket was weaker at midday today ahead of the federal government's budget announcement tonight.

Macquarie Equities private client adviser David Halliday said there was unnecessary concern surrounding the budget, which federal Treasurer Peter Costello had promised would enhance the economy and shift people back into the workforce.

"We're not strongly negative but there is certainly weakness around the market," Mr Halliday said. "The budget coming out tonight is keeping money on the sidelines but realistically there shouldn't be too many shocks for the market in the budget as most of it has been flagged in the financial press."

The benchmark S&P/ASX200 index was 6.4 points down to 3992.8 while the All Ordinaries dropped 7.3 points to 3949.5. On the Sydney Futures Exchange, the June share price index contract had lost 22 points to 3990 on a volume of 8480.

US stocks ended higher overnight, helped by optimism generated by some big merger news and the April sales of McDonald's.

The Dow Jones industrial average ended up 38.94 points, or 0.38 per cent, to end at 10,384.34. The Standard & Poor's 500 Index rose 7.49 points, or 0.64 per cent, to finish at 1178.84. The technology-laced Nasdaq Composite Index gained 12.32 points, or 0.63 per cent, to close at 1979.67.