Market slightly down on Fed disappointment

AUSTRALIAN stocks opened slightly lower after the US Federal Reserve disappointed markets by holding off with further monetary easing.
The Fed also held interest rates near zero and warned that, despite some improvement in the job market, unemployment remained high and the housing market in the doldrums.
"Strains in global financial markets continue to pose significant downside risks to the economic outlook," the Fed said.
Still, Cameron Securities' client advisor Adrian Leppinus said that the lack of action by the Fed shows improving health of the world's largest economy.
"We're seeing signs of the US recovering and positive growth so far this year," he said.
"I think most people are just waiting for Christmas."
At 10.37am AEDT today, the benchmark S&P/ASX200 index was down 13.5 points, or 0.3 per cent, at 4179.9, while the broader All Ordinaries index lost 13.6 points to 4238.1.
On the ASX 24, the December share price index futures contract fell four points to 4106, with 31,271 contracts traded.
The Fed's decision also followed some surprisingly positive news out of Europe overnight.
German data showed a pickup in investor confidence after the debt pact thrashed out by European leaders last week buoyed hopes for economic recovery.
In heavily-indebted Spain, strong demand saw yields in an auction of 12- and 18-month Treasury bills slip from November's 14-year high.
Leading the market lower were resources stocks, which fell 0.9 per cent despite a pick up in the gold price. BHP Billiton shed 41 cents, or 1.1 per cent, to $35.41, while Rio Tinto fell six cents, or 0.1 per cent to $62.70.
Consumer staples and discretionary shares posted marginal gains while, telecoms and financials slipped slightly.
Mr Leppinus said the market will be watching to see what headlines come out of Westpac's annual general meeting today, the first of three by the big four banks this week.
"They're expected to say that the European situation is still affecting credit availability," he said.
"Everyone's still pretty cautious right now."
Westpac shares were down 18 cents, at $20.65, Commonwealth Bank of Australia was down 12 cents, or 0.2 per cent at $49.23, National Australia Bank was down two cents at $23.73 and ANZ Bank was up three cents, or 0.1 per cent, at $20.78.
In economic news today, Westpac/Melbourne Institute showed December consumer sentiment survey was down from November.