Stocks weighed heavily by banks

Big bank stocks were down sharply at noon, putting the benchmark on track for heavy losses.

The Australian sharemarket is continuing to trade lower, as investors fret about the minimal impact Tuesday’s Reserve Bank rate cut had on the Australian dollar.

At 12pm (AEST), the benchmark S&P/ASX 200 index was down 0.7 per cent, or 0.77 per cent, at 5,498.1 points.

The broader All Ordinaries index was down 40 points, or 0.71 per cent, at 5,582.1 points.

Financial, retail and energy shares were all trading in the red, with the four major banks were down between 1.3 to 2.0 per cent at noon.

CMC Markets chief market strategist Michael McCarthy said traders were showing signs of buying fatigue as central bank actions lose their impact.

“Pessimism is now stalking investors, particularly in light of recent gains and market indices at annual or all-time highs,” he said.

“European shares were trounced overnight, and negativity overshadowed US trading.

“Questions around the efficacy of further stimulus could see local participants slam the sharemarket.”

Among energy stocks, Origin Energy, was down 2.2 per cent, while Woodside and Oil Search had each lost around 0.7 per cent.

Retail-focused JB Hi-Fi, Harvey Norman and Premier Investments were each trading around two per cent lower.

AAP