The Australian stock market opened marginally higher on Thursday, but pared gains and is currently trading in negative territory. Gains made by mining and energy stocks in early trading were offset by weakness in bank stocks.
In late morning trades, the benchmark S&P/ASX 200 Index is down 9.90 points or 0.24 percent to 4,155.60 and the broader All Ordinaries Index is losing 7.50 points or 0.18 percent to 4,207.20.
In the mining space, BHP Billiton is adding 0.58 percent and Rio Tinto is up 0.19 percent. Newcrest Mining is gaining 1.55 percent.
Shares of Commonwealth Bank are down more than 1 percent. The bank's net profit for the third quarter of fiscal 2012 was lower than expected by analysts. However, cash earnings rose to A$1.75 billion from A$1.70 billion in the prior corresponding period.
Among the other major banks, ANZ Bank is down 0.88 percent, National Australia Bank is declining 0.20 percent and Westpac is losing 1.20 percent.
In the energy sector, Origin Energy is gaining 0.77 percent, Oil Search is up 0.60 percent and Woodside Petroleum is adding 0.41 percent.
A consortium led by Macquarie Group has bought the Open Grid Europe gas distribution network for A$4 billion from German utility E.ON. The consortium is said to have outbid three other groups led by France's GDF Suez , Germany's Allianz and Belgium's Fluxys. However, Macquarie Group shares are down 0.45 percent.
Insurance Australia Group or IAG said it will review its business in the UK, which could result in its sale. IAG owns the Equity Red Star insurance business, the fifth-largest motor insurer in the UK, and commercial insurance broker Barnett & Barnett. The company's shares are gaining more than 2 percent.
On the economic front, Australia will announce February results for average weekly wages, plus inflation expectations for May. Wages are expected to rise 1.0 percent on month and 4.1 percent on year, after adding 0.5 percent on quarter and 4.3 percent on year in January. The inflation forecast for April came in at 3.3 percent.
In the currency market, the Australian dollar almost moved back to parity against the U.S. dollar on Thursday following the release of positive U.S. housing data. In late-morning trades, the local unit was trading at US$0.9914, up from US$$0.9893 on Wednesday afternoon.
On Wall Street, stocks showed a notable downturn over the course of the trading day on Wednesday after failing to sustain an early upward move. The pullback came as worries about the political situation in Greece once again overshadowed a batch of upbeat U.S. economic data.
The major averages all ended the day in negative territory, near their worst levels of the day. The Dow slipped 33.45 points or 0.3 percent to 12,598.55, the Nasdaq fell 19.72 points or 0.7 percent to 2,874.04 and the S&P 500 dropped 5.86 points or 0.4 percent to 1,324.80.
Meanwhile, the major European markets turned mixed over the course of the trading session on Wednesday. While the French CAC 40 Index rose 0.3 percent, the U.K.'s FTSE 100 Index fell by 0.6 percent and the German DAX Index dropped by 0.3 percent.
U.S. crude oil futures ended at a near six-month low on Wednesday, as continued concerns over the Greece crisis sparked-off commodity sell-offs. Adding to the pressure on crude prices were demand growth concerns after an Energy Information Administration report showed U.S. oil stockpiles to have increased more than expected.
Crude for June delivery dropped $1.17 or 1.2 percent to close at $92.81 a barrel on the New York Mercantile Exchange on Wednesday.
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