Westpac, NAB leading ASX down

After having hit a five-year high of 5,307.10 points a little over a week ago, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has retracted to 5,126.7 points – its lowest point in a month – with investors nervous about the possible fallout from the political situation in the US.

Whilst there were signs that US leaders were getting closer to an agreement regarding a budget deal on Friday, these signs diminished over the weekend resulting in heightened volatility in global markets. Stan Shamu, a market strategist at IG, believes that this weakness will likely continue in the near-term.

Although mining presented as the weakest sector yesterday, it is Australia’s key financials that are acting as a drag on the market today. Commonwealth Bank (ASX: CBA) is the only major bank not trading in the red, with ANZ (ASX: ANZ), NAB (ASX: NAB) and Westpac (ASX: WBC) down 0.5%, 1% and 0.9%, respectively.

Foolish takeaway

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

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