Two steps forward and then one back

After a sickly night on Wall Street, local sharemarket indices dived from the bell yesterday, the ASX 200 falling 122 points, before sentiment brightened in the early afternoon for it to close 38.7 lower at 6432.7.
Renewed worries about mortgage defaults had knocked 237 points off the Dow on Monday night, and locals were only too ready pick up the vibe.
The All Ordinaries finished 39.6 points, or 0.61 per cent, lower at 6493.6.
"People don't know what is going to happen, and tonight is going to be interesting in the US," said Ric Klusman, an institutional dealer with Aequs Securities. With the end of the month approaching investors were cautious, he said.
The resource sector was dragged down by Rio and BHP despite most commodity prices being positive overnight.
Rio Tinto fell $2.25, to $135.75, and its suitor BHP Billiton fell 16c, to $41.95.
In the oils, Santos rose 36c, to $14.11 and Woodside rose 6c, to $48.85, even though oil futures in New York overnight were slightly weaker.
Leading the US fall was the financial sector, including Citigroup Inc, the largest US bank, which fell more than 4 per cent, making the stock the biggest drag on the Dow.
This discombobulated bank investors here. ANZ fell 17c, to $27.45, the Commonwealth fell 50c, to $57.80, and NAB fell 39c, to $39.81.
Westpac, though, rose 38c, to $27.63, and St George rose 55c, to $35.05. The ambitious regional bank Bendigo rose 19c, to $16.36.
The big golds closed mixed. Newcrest rose 50c, to $35.50, Lihir rose 2c, to $4.09, and Newmont fell 14c, to $5.83.
The retail sector was stronger. Woolworths rose 12c, to $31.92, Harvey Norman rose 8c, to $7.03, and Wesfarmers rose 23c, to $42.75.
AWB was the ASX 200's biggest gainer, up 25c to $2.73, despite the likelihood of it losing its wheat export monopoly.