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MELBOURNE - The Australian share market retreated today, driven backwards by tumbling US stocks, profit-taking and lower metal prices.
At the 1615 AEST close the benchmark S&P/ASX200 was 36.4 points lower at 6325.1, while the all ordinaries dropped 34.6 points to 6363.2.
On the Sydney Futures Exchange, the September share price index contract was 53 points down at 6322 on a volume of 20,415 contracts.
ABN Amro Morgans adviser Lisa Jarvis said a series of factors had combined to push Australian stocks down today.
"Obviously we had a bit of a negative lead-in last night but we did have a bit of (a) negative day pre-empting that yesterday," Ms Jarvis said.
"Actually the market's tried to rally really since the open this morning.
"The market's held up rather well today. What we don't know is whether we'll get another wave of selling through tonight."
The resources sector was down, with Australia's biggest miner BHP Billiton shedding 66 cents to A$37.80 and its rival Rio Tinto dropping 72 cents to A$102.77.
Energy interests were also down, with Woodside Petroleum two cents poorer at A$46.75 and Santos losing 11 cents to A$13.65.
Banking stocks were mostly down, with Westpac giving up eight cents to A$26.33, the Commonwealth 44 cents lighter at A$55.56 and NAB retreating 10 cents to A$40.25.
Only the ANZ improved four cents to A$29.60.
Ms Jarvis said there was nervousness in the metals generally, compounded by large stocks of nickel in warehouses driving the price down.
"The market is a little bit nervous. We have got pretty close to all-time highs and suddenly some negative sentiment has come through yesterday and today," she said.
"We're really just being led by offshore a little bit.
"There's a lot of shakiness about and we're coming into our weak time in the cycle. July/August tends sometimes to see a bit of selling pressure come through our market."
At 1626 AEST, the price of spot gold in Sydney was USA\$6.00 higher at US$665.60 per fine ounce.
But the gold miners went in different directions, with Lihir steady at A$3.11, Newcrest putting on 59 cents to A$23.89 and Newmont giving up 10 cents to A$4.78.
Earlier today Newmont announced it was raising USA$1 billion to complete the large Boddington project in Western Australia.
In other market news United Group Ltd forecast a lift in annual earnings and said it would acquire United States-based property management company Unicco Service Company for A$477 million.
United Group last traded at A$17.55 after a trading halt was imposed before the market opened.
Iron ore explorer Ironclad Mining Ltd put on 47 cents to close at A$1.47 after debuting on the Australian stock exchange today with a strong premium to its initial public offer (IPO) price.
The retailers also had less in their baskets today with Woolworths losing 36 cents to A$27.83, Coles dropping seven cents to A$15.14 and David Jones giving back 12 cents to A$5.33.
Overnight, US stocks tumbled when Standard & Poor's cut ratings on USA$12 billion of subprime mortgage debt, and home improvement firm Home Depot as well as retailer Sears Holdings both slashed their earnings forecasts.
The Dow Jones industrial average plunged 148.27 points, or 1.09 per cent, to 13,501.70 and the Standard & Poor's 500 Index slipped 21.73 points to 1,510.12.
The Nasdaq Composite Index dropped 30.86 points to 2,639.16.
Media players followed the trend down, with PBL dipping five cents to A$19.50, News Corp slipping 36 cents to A$26.99 and its non-voting stock 32 cents down at A$24.86 and Fairfax losing two cents to A$4.87.
National carrier Qantas gained four cents at A$5.62, while telecommunications giant Telstra inched up two cents to A$4.65.
The most traded stock of the day was gold, nickel and copper explorer Cullen Resources, with 78.38 million shares worth A$6.8 million changing hands.
Its stock ended 0.3 cents lower at eight cents each after it announced a joint venture with Fortescue to explore for iron ore near Paraburdoo in Western Australia.
Preliminary turnover was 1.84 billion shares worth A$5.91 billion, with 472 companies ending higher, 770 lower and 373 steady.
- AAP