Local markets close steady
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Despite early gains, the market was dragged down by miners. (Getty Images: Sergio Dionisio, file photo)
The Australian share market has lost its earlier gains to close steady after the miners dragged local shares down amid fears of more commodity price falls.
The All Ordinaries index closed down eight points to 3,468 and the ASX200 dropped one point to 3,532.
National Australia Bank gained nearly 5 per cent to $19.46.
Qantas has erased some of yesterday's rise, which was prompted by the revelations of its merger talks with British Airways, and its shares are down 2.6 per cent to $2.29.
Rio Tinto has closed at its lowest level in more than four years, losing almost 12 per cent to $32.50.
It is being reported that Rio is planning to sell its 50 per cent share in a Chinese aluminium smelter to its joint venture partner, but Rio will not comment.
Nor will Macquarie Group comment on reports it has today slashed 100 jobs.
Macquarie shares have closed up 2.7 per cent to $28.30.
The debt-laden investment bank Babcock and Brown has scored a reprieve from its banks.
All the covenants on its $3 billion in debt have been suspended. and the banks have lent it a further $150 million.
But it has agreed that by the ninth of January, it will have come up with a plan to repay the $150 million.
After being in a trading halt for just over a fortnight, Babcock shares surged from 25 cents to as high 57 cents when they returned to trade today, buut they have closed at 39 cents.
Spot gold is worth $US769.30 an ounce, and a barrel of West Texas crude oil is worth $US46.79.
At 5:00pm AEDT, the Australian dollar was worth 64.5 US cents, 60.05 yen, 43.69 UK pence, and 50.83 euro cents.
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