http://nz.biz.yahoo.com//091102/16/ffxp.html
(Adds fund manager comment, stocks on the move)
MELBOURNE, Nov 2 (Reuters) - Australian stocks dropped 2.3
percent on Monday, with banks and miners sharply lower on fresh
worries over the strength of a global economic recovery.
Stock prices in major markets have risen in recent weeks on
hopes of a strong global recovery, but news that U.S. consumer
spending fell 0.5 percent in September raised concerns that
growth was due more to government stimulus than private demand.
"We've had this coming. The economy needs to grow without
the government," said Cannae Capital Partners managing director
Hugh Giddy.
"Our market is priced for the world to be a better place.
It's priced on China growing and China can't grow on its own,
it needs the world to be recovering," he said.
The benchmark S&P/ASX 200 index .AXJO was down 107.6
points at 4,535.6 at 2341 GMT, after gaining 1.5 percent on
Friday.
New Zealand's benchmark NZX 50 index .NZ50 fell 1.4
percent to 3,170.0.
The materials sector .AXMJ was 2.8 percent weaker as
concerns hit metals and oil prices, with top miners BHP
Billiton (ASX: BHP.ax) down 2.5 percent and Rio Tinto (ASX: RIO.ax) down
3.3 percent.
Financial stocks followed their U.S. counterparts lower,
with the major banks all down between 2.4 percent and 3.0
percent.
STOCKS ON THE MOVE
* Upmarket department store David Jones Ltd (ASX: DJS.ax) slid
2.6 percent ahead of the debut listing of its chief rival, Myer
Holdings Ltd MYR.AX, which is due to start trading at 0100
GMT.
2339 GMT
* Discretionary retail stocks were particularly hard hit
ahead of an expected central bank interest rate hike on
Tuesday. Furniture and electronics retailer Harvey Norman
Holdings (ASX: HVN.ax) was down 3.8 percent at A$3.84 and home
electronics chain JB Hi-Fi Ltd (ASX: JBH.ax) down 3.4 percent at
A$20.10.
2338 GMT
* Woodside Petroleum Ltd (ASX: WPL.ax) , Australia's No. 2 oil
and gas producer, fell 1.8 percent. It said it would sell its
51.55 percent stake in Australia's Otway gas project to venture
partner Origin Energy Ltd (ASX: ORG.ax) for A$712.5 million.
[ID:nSYD479381]
2336 GMT
(Reporting by Victoria Thieberger; editing by Jonathan
Standing)
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