Market opens lower after Wall St falls

AUSTRALIAN stocks have opened lower, with market players getting out of the resources sector and pouring into the big banks.

Australia's big two miners were lower in early trade - BHP Billiton was down 88 cents, or 2.74 per cent, at $31.18, while Rio dropped $1.57, or 2.88 per cent, to $53.02.

BHP announced a number of changes to its management team on Thursday, including departure of Mike Yeager as head of BHP's petroleum division, with Tim Cutt his replacement.

Elsewhere, Fortescue Metals Group said it was confident of meeting its full year production targets.

But its shares fell 13 cents to $3.59.

At the other end of the scale, financial stocks were up 0.46 per cent, with the big four retail banks all in positive territory.

Bell Potter senior adviser Stuart Smith said market players were rotating out of resources and into the banks on a day index options contracts rolled over.

"We have got an index rebalancing act this morning," Mr Smith said.

"The fearful are selling and the fearless are buying.''

The local market received a negative lead from Wall Street, with the Dow falling 0.94 per cent and the S&P500 off 1.43 per cent.

Moreover, futures contract prices for key commodities such as oil, copper and gold all finished lower in New York trading.

Making news, Wesfarmers said total sales at Coles supermarkets rose 6.4 per cent in the third quarter.

Wesfarmers was up 29 cents at $21.18, while Woolworths, which last week reported quarterly sales growth of 2.5 per cent, rose 14 cents to $35.74.

In addition to financial stocks, the consumer staples sector was one of the other bright spots on the local market, having risen 0.19 per cent in early trade.

At 1012 AEST on Thursday, the benchmark S&P/ASX200 index was down 18.9 points, or 0.38 per cent, at 4,985.7, while the broader All Ordinaries index was 19.7 points, or 0.39 per cent, lower at 4,973.9.

On the ASX 24, the June share price index futures contract was down 20 points at 4,982, with 8,370 contracts traded.

In New York yesterday, the Dow Jones Industrial Average fell 0.94 per cent to 14,618.59 points, while the broad-based S&P500 slid 1.43 per cent to 1,552.01.

Meanwhile, the tech-heavy Nasdaq Composite Index ended down 1.84 per cent at 3,204.67.

Futures contract prices for key commodities such as oil, gold and copper all settled lower in offshore trading.

In economics news on Thursday, the NAB business survey for the March quarter will be released.

Also, the Australian government will auction $1 billion of Treasury Notes.

In companies news, quarterly production reports from Fortescue Metals Group, Woodside Petroleum and Iluka are due for release.

Bank of Queensland and Australian Pharmaceutical Industries publish their interim results, while Wesfarmers will release third quarter retail sales figures.

Today, the benchmark S&P/ASX200 index rose 1.09 per cent to 5004.6 points, while the broader All Ordinaries finished 1.00 per cent higher at 4,993.6 points.

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