SYDNEY: Australian shares were mixed on Wednesday, underpinned by gains in top miners and a rally in Qantas Airways, but dragged by banks as uncertainty continues over momentous political and economic changes in Europe.
US stocks recovered as Mario Monti, Italy's prime minister-designate, is expected to complete the process of forming a government in less than three days, much faster than normal. For details see.
"The market's just holding on," said Lucinda Chan division director Macquarie Equities.
"It will remain in these sort of conditions I suspect, trading more-or-less sideways until we hear a bit more. The market's not sure yet, there's still a lot of unfinished business," she said.
The benchmark S&P/ASX 200 index was flat at 4,285.6 at 0040 GMT. It fell 0.4 percent on Tuesday.
New Zealand's benchmark NZX 50 index fell 0.7 percent to 3,294.5.
STOCKS ON THE MOVE:
Qantas Airways rallied 6.4 percent to A$1.755, its highest in three-and-a-half months, after the airline said it is hopeful of reaching an agreement with three key unions by a Nov. 21 deadline, after it grounded its fleet last month to end industrial disputes. See. Virgin Blue fell 1.3 percent.
New Zealand's largest listed company, Fletcher Building Ltd, fell 2.5 percent to NZ$6.24 after it said it was shedding staff and reviewing operations to cut costs as it reaffirmed profits will fall in the first half.
BHP Billiton rose 1.1 percent while Rio Tinto gained 1.4 percent after iron ore and copper prices both gained. Limited supplies and sustained buying interest from top consumer China lifted spot iron ore prices for an 11th straight day.
Telstra rose 0.3 percent to A$3.18 after Fitch Ratings said the outlook was negative but Telstra was in a comparatively better position than Telecom Corporation of New Zealand Ltd. Telecom shares fell 1.7 percent to NZ$2.585.
Commonwealth Bank led lender losses, falling 0.8 percent to A$48.78. Citi lowered its recommendation on Commonwealth to "Sell," saying new Chief Executive Ian Narev's search for growth may reduce the stock's premium to its peers.
Australia's central bank on Wednesday set out the terms of a new liquidity facility that would allow domestic commercial banks to better meet liquidity standards under Basel III rules, and at costs less onerous than banks had feared.
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