The Australian share market has reversed all of Monday’s gains in the early session, as investors turn their attention to the US Federal Reserve’s two day policy meeting which kicks off tonight in Washington. Market speculation over whether or not the Fed will wind back its stimulus program remains mixed.

Locally, the minutes from the RBA’s June Board meeting have been released, with the RBA noting that the current inflation outlook “may” give scope for further rate cuts.

Selling on the market is widespread, with the financial sector giving back a lot of yesterday’s gains.

All sectors are in the red, with the exception of property trusts, up 0.7 per cent.

In company news Elders (ELD) has come back online, falling 12.2 per cent to 7.9c after rejecting a takeover bid for its rural services division from rival Ruralco (RHL). The loss making company says it has entered into a short period of exclusive negotiation with one of three parties which made final binding offers, claiming Ruralco’s offer was too low. RHL has fallen 0.9 per cent in the early session to $3.36.

In the US, the NAHB HMI (US Housing Market Index) increased 8pts in June to 51pts. It is the first time since April 2006 the Index has been above 50, suggesting expansion and supports the view the US housing market is in good shape. Building products supplier James hardie (JHX) has fallen 1.4 per cent in the early session to $9.42 while Boral (BLD) is up 1.2 per cent to $4.14.

So far, a total of 618 million shares have changed hands, worth $1.89 billion. 340 shares are up, 456 are down and 284 are unchanged.

The Australian dollar has fallen following the release of the RBA minutes and is currently buying US95.05c.

Enjoy your day.

Juliette Saly, CommSec