Market close: Australian shares tumble, all major sectors falling

Australian shares have tumbled as banking and finance stocks led the share market lower with investors selling out of all major sectors.

Markets at 6:01pm (AEST)

ASX 200 -1.4 pc to 5,466, All Ords -1.3 pc to 5,551

Major gains: Seven Group +7.2 pc to $7.18, South32 +2.7 pc to $1.92, Covermore +1.8 pc to $1.40

Major losses: Seven West -10.1 pc to $0.76, Mantra Group -6.1 pc to $3.25, GWA Group -5.9 pc to $2.07

Futures: Euro STOXX 600 -0.5 pc to 332.7, FTSE -0.1 pc to 6,586, S&P 500 -0.2 pc to 2,148

AUD: 75.9 US cents, 57 British pence, 76.6 Japanese yen, 67.7 euro cents, $NZ1.056

The major banks only passed on about half of yesterday's rate cut and Prime Minister Malcolm Turnbull today urged them to pass on the cut in full or explain the decision "fully and comprehensively" to their customers.

Among the Big Four banks, Commonwealth Bank dropped 2 per cent to two-week lows of $76.03, ANZ lost 1.9 per cent, Westpac tumbled 2.5 per cent and NAB dumped 2.8 per cent.

Meanwhile the mining company Rio Tinto, the world's second-biggest mining company, reported a 47 per cent decline in underlying earnings to $US1.56 billion for the first half.

Rio Tinto's shares closed flat at $49.42 before the results were released after the closing bell.

Other resource companies were mixed, with Newcrest Mining gaining 3.3 per cent to $25.70, but BHP Billiton dipped 0.8 per cent.

Meanwhile Kerry Stokes' conglomerate Seven Group announced a full-year net profit of almost $200 million, bouncing back after a massive lost last year, but flagged that its earnings outlook is flat.

Shares in Seven soared 7.7 per cent to $7.18, a 14-month high.

In commodities trade, gold is higher at $US1,363 an ounce, iron ore is stronger at $US60.70 a tonne, while West Texas crude is weaker at $US39.45 a barrel.

Source: ABC News

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