Australian shares turn lower

Australian shares ended lower on Thursday, coming off a three-week peak set the previous day as investors turned cautious amid renewed worries about a Greek default. The S&P/ASX 200 index shed 1.0 percent, or 54.1 points, to 5,632.7, recoiling from a three-week high of 5,705.8 set in the previous session. It was market's first negative close this week.
New Zealand's benchmark NZX 50 index finished 0.7 percent, or 42.2 points, lower at 5,733.3. Without a deal by Saturday, endorsed by Greek lawmakers and a vote in the German parliament on Monday, Greece may not get the cash to meet Tuesday's deadline to repay 1.6 billion euros to the International Monetary Fund or be declared in default, potentially putting it on a path out of the eurozone.
The big four banks were all in the red, while the major miners including Rio Tinto struggled to make much headway. With Athens resisting measures regarded by its lenders as essential to balance its public finances, eurogroup ministers cut short an emergency meeting summoned to approve an agreement because there was no deal ready for them to discuss. Greece has to repay 1.6 billion euros to the International Monetary Fund next Tuesday or be declared in default, potentially unleashing a bank run and capital controls, followed by a slide out of the single currency area.
"The less said about this the better, as the level of frustration among financial market participants is clearly elevated," said Chris Weston, chief market strategist at IG. "The positive is that markets haven't really shown any major concern by the rejection overnight." Among the biggest loser was Slater and Gordon Ltd, which slumped more than 20 percent in its biggest one-day loss ever. New Zealand's benchmark NZ50 share index slipped 0.4 percent, or 26.6 points, to 5,748.9 with utilities and materials stocks under pressure. Meridian Energy fell 2.3 percent as investors awaited a deadline next week to see if Rio Tinto will extend or terminate its power supply contract with the energy retailer, a deal worth 13 percent of the Meridian's total demand.