Market Wrap: BHP rebound offset as Big Bank shares crash

Local shares staged a comeback late in the session, but still closed considerably lower for the day.

Here’s a quick recap:

  • S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) down 0.8% to 5037 points
  • ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) down 0.8% to 5087 points
  • AUD/USD at US 72.89 cents
  • Iron Ore at US$39.08 a tonne, according to the Metal Bulletin
  • Gold at US$1,075 an ounce
  • Brent oil at US$40.42 a barrel

The ASX 200 took a dive and briefly traded below the 5000 point mark as shares in the big four banks fell hard. This was possibly due to the strong jobs report which reduced the chance of an official interest rate cut when the Reserve Bank of Australia officials meet in February.

Australia and New Zealand Banking Group (ASX: ANZ) was the only major to finish less than 1% lower. Westpac Banking Corp (ASX: WBC) was the worst of the four, its share price falling 2% for the session.

However, BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) both bounced after a 1.1% rise in the iron ore price overnight. The pair closed 1.9% and 2.4% higher, but Fortescue Metals Group Limited (ASX: FMG) still closed 1.4% lower.

Woolworths Limited (ASX: WOW) and Telstra Corporation Ltd (ASX: TLS) also ended the day in the red, down 1% and 1.1%.

WHITEHAVEN COAL LIMITED (ASX: WHC) was the biggest casualty for the day, falling 11.6%. Arrium Ltd (ASX: ARI), on the other hand, rose 11.3% for the day.

Here are Thursday’s top stories:

  1. How it could get worse for BHP
  2. Is this the end of BC Iron Limited?
  3. Here’s why the Vita Group Limited share price is surging
  4. Austal Limited shares sink on US problems
  5. Why the Medibank Private Ltd share price fell today
  6. South32 share price sinks again

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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