Banks, retailers weigh on Aussie market

Australia's banks and retailers have dragged Australian shares 1 percent lower on a volatile Thursday as investors weigh comments from central banks both locally and offshore.

At the close on Thursday, the benchmark S&P/ASX200 index was 49.3 points, or 0.94 percent lower at 5,193, while the broader All Ordinaries index was down 46.9 points, or 0.89 percent, at 5,247.9.

Shares gained slightly in the morning as Australia's central bank chief Glenn Stevens continued his easing bias sentiment. However hawkish comments from the chair of the U.S. Federal Reserve Janet Yellen was a key driver on the local market.

Indications of a rate "lift off" from the U.S. Federal Reserve coupled with the realization they're preparing for the slowest growth since the GFC after posting record profits for six straight years as new capital regulations come into force sparked a sell off in the local banks.

"There is some negativity in banks even after they posted record profits as investors do seem to be having second thoughts about owning them due to challenges ahead," said IG Markets analyst Angus Nicholson.

Westpac is down 0.51 percent, ANZ fell 0.82 percent, the Commonwealth Bank of Australia lost 0.95 percent while the National Australia Bank slumped 1.24 percent.

BHP Billiton fell 0.81 percent, rival Rio Tinto is 1.38 percent weaker while gold miner Newcrest slumped 3.33 percent.

Oil Search is down 1 percent, however Santos edged a 0.33 percent gain while Woodside bounced 0.96 percent.

Wesfarmers fell 1.09 percent, Woolworths slipped 0.92 percent, while Telstra lost 0.19 percent. Endit