The Australian sharemarket has fallen sharply today, ending what has been a rewarding six-day rally.
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has followed the lead set by the Dow Jones and NASDAQ indices overnight which fell 1% and 0.2% respectively on disappointing corporate earnings results from the likes of Microsoft, Yahoo and IBM. The local benchmark is down just over 1% and sitting at 5648 points.
Investors are also responding to a mixed production report issued by BHP Billiton Limited (ASX: BHP) this morning. The mining heavyweight has fallen 1.1% despite achieving better-than-expected iron ore production figures with further write-downs in its copper division likely weighing on the market's sentiment. Rio Tinto Limited (ASX: RIO) is also down 1%, while Fortescue Metals Group Limited (ASX: FMG) has managed to rise 2.6%.
The nation's big four banks are also underperforming and acting as a drag on the broader market. National Australia Bank Ltd. (ASX: NAB), Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Corp (ASX: ANZ) have all fallen between 0.7% and 0.9%, while Commonwealth Bank of Australia (ASX: CBA) has shed 1.3% of its price to trade under $87 a share.
Elsewhere, DUET Group (ASX: DUE) plummeted 8.4% after emerging from a two-day trading halt following the successful completion of its institutional entitlement offer which raised $806 million and was oversubscribed. The infrastructure group is raising capital to fund the acquisition of Energy Developments Limited (ASX: ENE).
Investors will no doubt be disappointed by today's heavy falls, with red splattered across most sectors of the market. With the market once again trading below 5700 points however, it is clear that there are a number of excellent buying opportunities out there for investors who know where to look.
Indeed, there are some bargains presenting themselves at the upper end of the market, but even more amongst the smaller companies on the ASX.
