Reuters: Hot Stocks: Australia shares drift lower, wary over Fed policy

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Australia shares drift lower, wary over Fed policy Jun 21st 2013, 06:53 Fri Jun 21, 2013 2:53am EDT (Adds details, comments) SYDNEY, June 21 (Reuters) - Australian shares fell 0.4 percent on Friday, on lingering worries over the Federal Reserve's plans to taper monetary stimulus later this year, but the market trimmed early losses as a weaker Australian dollar buoyed some U.S.-related stocks. Banks led the sell-off with Commonwealth Bank of Australia slipping 0.3 percent while Westpac Banking Corp fell 1.6 percent. National Australia Bank eased 0.8 percent. The Fed's plan to eventually stop pumping cheap money into the world's biggest economy has raised concerns about the broad impact on growth, with the absence of liquidity support down the road prompting sharp adjustments in global asset markets. "The thought that the economy has to stand on its own two feet is causing traders to extend their positions further," said Tim Waterer, senior trader at CMC Markets, "This is giving investors a reason to take profit in relation to the strong run up the U.S. equities have had this year." The S&P/ASX 200 index fell 19.6 points to 4,738.8, after dipping to an intraday low of 4,683.3. The benchmark fell 1.1 percent for the week. Miners reversed early losses to finish the session modestly higher after Shanghai steel futures hit a four-week high on Friday. BHP Billiton rallied 0.9 percent while rival Rio Tinto Ltd edged 0.1 percent higher. Meanwhile, stocks with exposure to the United States edged higher, supported by the effects of a weaker Australian dollar as earnings from abroad are boosted when repatriated home. Biotechnology firm CSL Ltd inched 0.1 percent higher while pallets maker Brambles Ltd climbed 1 percent. Treasury Wine Estate also added 1 percent. "You can see that CSL and some of the other U.S.-exposed stocks are actually doing well," said Damien Boey, equity strategist at Credit Suisse. The Australian dollar found a brief respite from selling on Friday but the currency was still heading for its worst week in months falling to $0.9232 Sirius Resources tumbled 5.6 percent to A$2.35, its lowest trading price since February, after appointing a new chief financial officer. U.S. stocks fell more than 2 percent on Thursday, with the S&P 500 recording its biggest fall since November 2011. The drop on Wall Street was accompanied by a sharp sell-off in global equities, commodities and bonds after the Fed on Wednesday confirmed it would start to trim its massive stimulus this year if the U.S. economy improved as expected. New Zealand's benchmark NZX 50 index fell 0.8 percent or 35.5 points to finish the session at 4,363.1 (Reporting By Thuy Ong, additional reporting by Michael Sin; Editing by Jacqueline Wong) Link this Share this Digg this Email Reprints

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