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The Australian stock market closed lower today after United States markets fell sharply after a smaller than expected interest rate cut by the US Federal Reserve.
ABN Amro Morgans senior client adviser Roger Chandler said the Australian market followed Wall Street downwards, with the global miners and some of the big banks leading the way lower.
"It's following Wall Street just about identically because all the banking stocks, both in Europe and the US, struck a few hurdles last night," Mr Chandler said.
Mr Chandler said investors were in a subdued mood, not wanting to buy stocks even though the market was cheaper.
At the 1615 AEDT close, the benchmark S&P/ASX200 index was 65.2 points lower at 6615.2, and the All Ordinaries was down 62.7 points at 6675.4.
On the Sydney Futures Exchange, the December share price index contract was off 75 points at 6625, on a volume of 19,415 contracts, according to preliminary calculations.
In the resources sector, BHP Billiton reversed A$1.00 to A$43.20, and Rio Tinto backtracked A$4.50 to A$142.00.
Herald Resources surged 43 cents, or 23.5 per cent, to A$2.26 after one of Indonesia's largest mining companies, PT Bumi Resources, launched a A$455 million hostile takeover bid for the zinc hopeful.
Oil and gas producer Woodside Petroleum added 12 cents at A$47.51 on higher oil prices, and Santos was 23 cents up at A$14.53.
Among the major banks, Commonwealth Bank lost 24 cents to A$60.54,and the ANZ gave away 33 cents to A$28.10, while National Australia Bank lifted 25 cents to A$39.16 and Westpac nudged up one cent to A$29.61.
Elsewhere in the financial services sector, Bell Financial Group closed its debut trading day at A$2.36 cents compared with an offer price of A$2.00.
On Wall Street overnight, the Dow Jones industrial average slid 294.26 points to 13,432.77 after disappointment that the US Federal Reserve's quarter of a percentage point rate cut was not aggressive enough.
In the media sector, broadcaster Ten Network Holdings picked up one cent at A$2.88 after it said first quarter earnings rose by 14.2 per cent and that it continued to expect an improved full year performance.
Consolidated Media Holdings was up 10 cents at A$4.35 and Fairfax eased three cents to A$4.79.
News Corp was 21 cents weaker at A$24.64 and its non-voting scrip descended 11 cents to A$23.70.
Telco Telstra was steady at A$4.68 as it claimed victory in a long-running legal action against the competition watchdog after the Federal Court today quashed a competition notice relating to price increases made on two Telstra products two years ago.
Telstra's instalment receipts were unchanged at A$3.14
Optus-owner Singapore Telecommunications improved four cents to A$3.10.
Retailer Woolworths reversed 35 cents to A$34.50, and David Jones sagged one cent to A$5.33.
In the gold sector, Newmont dipped five cents to A$5.65, Newcrest found one cent at A$33.21, and Lihir stepped forward nine cents to A$3.90.
The price of gold in Sydney at 1634 AEDT was US$803.75 per fine ounce, down US$3.40 on yesterday's close.
Gaming firm Crown, which split off from James Packer's Publishing and Broadcasting, was up three cents at A$13.83 as it said it would spend US$1.8 billion (A$2.1 billion) on its first casino acquisition in the US.
Allco Finance Group firmed four cents to A$7.82 as its rejigged offer for the 80 per cent of Rubicon Holdings it doesn't already own received Allco shareholder approval.
MYOB surged 10 cents to A$1.50 after the business software company upgraded its annual guidance and flagged a capital return to shareholders.
The top traded stock by volume was gold explorer and producer Republic Gold, with 62.9 million shares worth A$7.9 million changing hands.
Republic Gold was steady at 12 cents.
Preliminary national turnover was 1.54 billion shares worth A$5.97 billion, with 754 stocks down, 478 up and 369 unchanged.