Why Australian stock market down feb 9 2012

Why Australian stock market down feb 9 2012 ; THE Australian share market was lower this afternoon due to concerns about Europe's unresolved debt crisis. Stock markets across Asia were weaker today as traders nervously awaited announcements from the European Union about measures to stem the region's debt problems.

The negative mood was also being felt in Australia, with the local currency trading lower and domestic shares drifting into the red

Greece is expected to announce another round of spending cuts overnight in an effort to secure bailout funds from the International Monetary Fund and its European neighbours.

Market watchers are also hoping to get confirmation on a deal between the private sector and Greece on writing-off some of its problematic debt.

investors have been disappointed with the lack of concrete news from Europe and were hopeful that would change overnight.

Australia's largest telco Telstra said net profit for the six months to December 31 was $1.468 billion, which was below market expectations of $1.518 billion. At 1208 AEDT, Telstra's shares were trading seven cents lower, or 2.03 per cent, at $3.37.
The more delays we see in these announcements, the more likely the market is to take a negative view.

BHP shares were still down after it reported on Wednesday a drop in first-half profit of 5.5 per cent, to $US9.941 billion ($A9.3 billion).

Its shares were 67 cents, or 1.77 per cent weaker at $37.08 by 1208 AEDT.

At noon AEDT today, the benchmark S&P/ASX200 index was down 30.5 points, or 0.71 per cent, at 4,260.2, while the broader All Ordinaries index was down 28.9 points, or 0.66 per cent, at 4,334.8.

On the ASX 24, the March share price index futures contract was down 34 points at 4,223, with 11,547 contracts traded.

Rio Tinto releases its full-year results after the market closes today.

Its shares have fallen 69 cents to $71.07.

Newcrest Mining, which releases its half-year results on Friday, was down 20 cents at $33.20.

In other news, Rupert Murdoch's News Corporation, posting its first-half results, unveiled a strong rise in second-quarter earnings, largely driven by its cable TV and film businesses. News Corp shares were up 36 cents, or 1.92 per cent, to $19.08 at 1214 AEDT.

Also, wagering and gaming firm Tabcorp Holdings lifted its first-half underlying profit by 14.1 per cent and said it expected a similar performance for the remainder of the year.

Tabcorp shares were up nine cents, or 3.15 per cent, to $2.95. The banking sector was relatively flat. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

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