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The Australian stock market retreated today following further credit crunch fears on Wall Street and weak metals prices overnight.
At 1615 AEDT, the benchmark S&P/ASX200 index was down 22.7 points to 6508.1, while the All Ordinaries lost 20.4 points to 6568.4.
On the Sydney Futures Exchange, the December share price index contract was four points lower at 6541, on a volume of 18,815 contracts.
CMC Markets dealer Matt Wacher said trading volumes had been lower this week in the lead-up to Christmas.
"Everyone's waiting to see next week what the (US) Federal Reserve does," Mr Wacher said.
"(They're) probably sitting on their hands til then and then it will be all over for Christmas."
Mr Wacher said the Asian markets had been quite slow as well today, while the local bourse had opened lower on the back of Wall Street's weak lead and lower metals prices over night.
Continuing fears about the subprime-related credit squeeze and growing unease about fallout from the housing slump pushed US stocks down overnight.
Locally, the big banks felt the pinch except Westpac, which gained 21 cents to $28.38
ANZ dropped 10 cents to A$27.74, Commonwealth Bank was steady on A$59.54 and National Australia Bank fell 20 cents to A$38.90.
The big miners were mixed, with Rio Tinto buoyed by fresh takeover talk following an overnight report that a Chinese steel maker was shaping as a rival to BHP Billiton.
Rio shares added 72 cents to A$143.82 while potential predator BHP Billiton shed 40 cents to A$42.70.
At 1620 AEST energy stocks were mixed, Woodside Petroleum had dropped 65 cents to A$47.05, Santos had gained 47 cents to $14.06 and Oil Search added 12 cents to A$4.72.
The spot price of gold was US$803.10 per fine ounce, up US$11.80 from yesterday's closing Sydney price of US$791.30 per fine ounce.
The gold miners were mixed, with Newcrest Mining shedding six cents to A$32.00, Newmont edging up five cents to A$5.75 and Lihir Gold dipping two cents to A$3.77
In market news, Resource Pacific Holdings Ltd shares jumped to a record high after Xstrata Coal launched a A$960 million counterbid for the coal miner, trumping a rival offer.
Resource Pacific shares added 10 cents to A$3.01.
Agricultural chemicals business Nufarm added two cents to A$$16.77 after acknowledging it had received other approaches from parties interested in the company since a Chinese-led consortium proposed a A$3 billion takeover.
Investors lifted Coca-Cola Amatil shares 20 cents to A$10.32 after the beverage maker revised up its net operating profit forecast for its full year to December 31.
Leighton Holdings shares surged A$3.28 to A$62.69 on news it had won a US$650 million (A$746.23) contract to build a high-rise complex and two hotels in the United Arab Emirates.
The media sector was mixed, with PBL media spin-off Consolidated Media Holdings, down eight cents to A$4.10, and Fairfax Media lost three cents to A$4.70
News Corp gained 10 cents to A$24.37, while its non-voting scrip found seven cents to A$23.57.
Overnight, the Dow Jones industrial average ended down 65.84 points, or 0.49 per cent, at 13,248.73. The Standard & Poor's 500 Index dropped 9.63 points, or 0.65 per cent, to 1,462.79. The Nasdaq Composite Index closed off 17.30 points, or 0.66 per cent, at 2,619.83.
By 1629 AEDT the retailers were mixed, with Coles owner Wesfarmers losing 40 cents to A$42.35, Woolworths gaining 39 cents to A$34.14 and David Jones four cents weaker at A$5.10.
The telcos were also mixed, with Telstra losing two cents to A$4.62, its instalment receipts down two cents to A$3.09 and rival Optus-owner Singapore Telecommunications up five cents to A$3.07.
The top traded stock by volume was men's merchandiser Retail Star with 402.55 million shares changing hands worth $11.17 million.
Its shares rose by 0.3 cents to 2.3 cents but the retailer said it could not explain the recent trading in its stock, in response to an ASX query.
Preliminary market turnover was 2.06 billion shares worth $5.78 billion, with 546 stocks up, 719 down and 351 unchanged.
- AAP