Weaker performances by domestic miners and the big four banks has dragged down the Australian share market.

social-media-stocksThe price of iron ore slumped 12% to $96.80 in May. BHP Billiton was down 48 cents to $37.01. Rio Tinto dropped 77 cents to $59.30 , and Fortesque Metals was down 13 cents at $4.41.

Of the banks: CBA had lost 46 cents at $81.59, ANZ was at $33.49, down 24 cents, while Westpac slumped 10 cents to $34.42. Only the NAB managed to improve, up 8 cents to $33.49.

Analysts are divided over whether this share market slide is indicative of overseas investors’ reactions to the Federal Budget or symptomatic of a general contraction of the Asia and U.S. economies. Tokyo has fallen 0.34 cents, Seoul 0.86 cents, Shanghai 1.39 cents, with only the Hong Kong index resisting the trend with a 0.31 per cent rise.

Interest is now turning to the HSBC Purchasing Managers Index (PMI) to be released next week. This will outline the manufacturing activity from China, the U.S and Europe. China will release its own PMI figures today.

It is hoped these manufacturing results will give investors something to smile about; and provide some much needed stimulus to the world economy.

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