Australian Stocks: What Happened Today?

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            [0] => ((RIO))
            [1] => ((AGO))
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            [0] => RIO
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This story features RIO TINTO LIMITED.
For more info SHARE ANALYSIS: RIO
The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

Download related file: afternoon_report_2013-02-26

The analyst principally responsible for the production of this research report is: Howard Humphreys, Director & Lead Research Analyst, Seismic Research

Asian markets plummet on Italian election result

The ASX 200 slumped as much as 1.5% today after U.S. stocks plunged late in the trading session on the back of Italy's election results, which showed the Senate vote is deadlocked. Italian President Napolitano will now likely appoint an interim government ahead of another election.

But first politicians will have to debate changes to election laws to ensure a winner in the second round. This process, which could take months, is expected to delay further long-term reforms needed to improve Italy's productivity and put at risk President Mario Monti's existing hard-fought reforms.

The local market recovered some ground by midday amid bets the losses were overdone. Rio Tinto ((RIO)) lost 0.9% to drag down miners after its A-minus credit rating was revised to negative watch by Standard & Poor's. Atlas Iron ((AGO)) fell 3.4% after the miner reported a drop in underlying first half profit to $1m from $62m a year ago.
 

To read today's report in PDF in full, see link at the top of this story.

(For a more comprehensive summary of last night’s market action see FNArena’s Overnight Report.)

Analyst Certification: Any views expressed in this research report by Seismic Research Solutions Pty Ltd (‘Seismic Research’) accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the compensation of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations or views in this research. The analyst principally responsible for the preparation of this research report receives compensation based on overall revenues of Seismic Research and has taken reasonable care to achieve and maintain independence and objectivity in making any recommendations.

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