Australian market set to open lower

Shares in petrol retailer Z Energy Ltd was the top performer, up 3.2 per cent after it said its acquisition of Chevron New Zealand was on track. “Instead, the market abhorred the vacuum, succumbing to underlying doubts sown by the Fed’s inaction last week”.

Mr Nicholson said Chinese manufacturing data set for release at 1145 AEST could reverse some of the declines if the numbers improved as expected.

However, a couple of companies were bucking the trend: Qantas was up 1.1 per cent to $3.72 on the positive impact of lower oil, and therefore jet fuel, prices.

Commonwealth Bank retreated 1.06 per cent lower at $73.02, while ANZ shares shed 1.13 per cent to $27.515.

Westpac, heavily exposed to Australian home loans, slumped 3.6 per cent to $29.98.

BHP was down 82 cents at $23.04, with Rio Tinto down $1.01 at $48.18.

Wesfarmers lost 0.95 per cent to $38.66, while Woolworths gave up 1.09 per cent to $24.52.

Energy stocks also fell in step with the oil price, with Woodside Petroleum off 2.5 per cent while its takeover target Oil Search lost 0.9 per cent, propped up by the prospect of a buyout.

Australian shares fell to a two-week low on Wednesday as concerns about the economic outlook for top trading partner China sent commodity prices lower, hitting sentiment towards stocks across the board.

BHP Billiton reaffirmed its commitment to its progressive dividend policy in its annual report.

In Australia, the market on Tuesday finished higher despite losing much of its early morning gains as investors nervously await key Chinese economic data.

Ms Masters said bonds had been unmoved by the ANZ/Roy Morgan weekly consumer confidence index which rose 8.7 per cent the week Malcolm Turnbull became prime minister, bouncing back from three weeks of falls.