Business

Australia shares fall, breach key support on US deadlock worries

Australian shares fell 0.9% today, pulling back in the afternoon session after US futures dropped on lingering worries about the consequences of a prolonged US debt battle.

The S&P/ASX 200 index dropped 46.9 points to 5,161.1, the lowest close since September 6. The benchmark broke the 5,200 support line which it held for about a month.

Equity markets have been under pressure since the US federal government shutdown began on Tuesday, and that is expected to only increase as the October 17 deadline to raise the federal borrowing limit gets closer.

Big banks led the falls on concerns the US debt ceiling stalemate could cause strains in the credit markets. Trading was subdued though on a public holiday in the financial capital of Sydney.

New Zealand's benchmark NZX 50 index dipped 0.1% to 4,756. – Reuters, October 7, 2013.

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