Australian market set to open flat

THE Australian share market has lost around $41 billion in early trade, as BHP Billiton shares tumble below $22 for the first time since the global financial crisis.

The Australian share market is higher after mining giant Glencore rejected fears that it can’t withstand falling commodity prices.

The benchmark S&P/ASX200 index was up 103.2 points, or 2.1 per cent, at 5021.6 points.

The resources sector was the hardest hit, taking cues from Monday’s rout for the sector in the European markets, while energy and banking stocks were also trading weaker. “This week may provide the catalyst for a break out from the current narrow range, but today is not the day”, said CMC Markets chief market strategist Michael McCarthy.

Miner Rio Tinto surged 2.4 per cent after agreeing to sell 40 per cent stake in its coal mine to New Hope Corp.

The Dow and S&P 500 finished higher but the tech-rich Nasdaq fell for the sixth straight day.

Among the big four banks, Commonwealth Bank was up 51 cents to $71.95, Westpac gained 17 cents to $30.12, NAB rose 30 cents to $30.09 and ANZ added 21 cents at $27.21.

The benchmark ASX200 index lifted 2.1 per cent to 5021.6, while the broader All Ordinaries gained 2 per cent to 5058.6. Shares in Genesis Energy tumbled 5.6 per cent, its second largest daily loss this year.

Among major currencies the Japanese yen was 0.2 per cent stronger at Y120.39 per greenback, while the Australian <strong>dollarstrong> was flat at US$0.7026.

The index of Australia’s biggest stocks picked up a few steam as trading continued, but even a 1.5 per cent gain by 10:30am (AEST) failed to get the ASX 200 back above 5,000 points – it was at 4,993. The changes resulted in a rise of A$1.4 million to the A$82.3 million net profit it reported for 2014/15.