Australia shares fall, ANZ outlook, Fed stimulus uncertainty weigh
(Adds analysis, quotes, stocks on the move)
SYDNEY Aug 16 (Reuters) - Australian shares fell 0.8 percent on Friday, as Australia and New Zealand Banking Group Ltd's disapointing growth outlook compounded the dour mood from a sharp decline on Wall Street on growing concerns the U.S. Federal Reserve will start to trim its stimulus soon.
Shares in ANZ tumbled 2.8 percent after the country's third-biggest lender said full-year revenue growth would be slower than last year, and flagged margin pressure. .
ANZ's cautious comments put a dampener on the financial sector, with Westpac Banking Corp slipping 0.4 percent and National Australia Bank shedding 0.9 percent.
Adding to the broad market pressure, global miners BHP Billiton Ltd lost 1.2 percent and Rio Tinto Ltd fell 1.6 percent. BHP said on Friday U.S. authorities have laidout grounds for possible enforcement action against the top global miner for corrupt practices, stepping up a four-year probe linked partly to its 2008 Olympics sponsorship.
The bearish domestic catalysts came on top of a bad day for U.S. stocks, which had their biggest one-day percentage drop since late June on Thursday after positive data showed the Federal Reserve could be closer toward trimming its $85 billion monthly bond-buying program.
"Markets will be weighing the possibility of a significant downward correction in world equity valuations led by the U.S., against the potential for lower interest rates and what has so far been a respectable reporting season in Australia," said Ric Spooner, chief market analyst at CMC Markets in a note to clients.
The S&P/ASX 200 index lost 39.8 points to 5,112.6 by 0151 GMT. The benchmark fell 0.1 percent on Thursday.
"Investors also tend to be cautious ahead of September, as we have Fed meeting in the US and the election here in Australia," said Biyi Cheng, head of dealing APAC, City Index.
Speculation about the timing of an end to the Fed's bond buying stimulus has dominated markets in recent months, with investors fretting over an eventual end of liquidity support that's underpinned global risk assets in the past five years.
For the year, the local bourse is up 10 percent, and hit its year-to-date high of 5,249.6 on May 15.
Elsewhere, defensives were weaker, led by Wesfarmers Ltd losing 3.1 percent, which analysts said was tied to a weak result from U.S. retailer Walmart.
The gold sector helped to contain the broader market losses after the yellow metal rallied overnight. The world's no.3 gold miner Newcrest Mining Ltd rose 4.0 percent while rival Regis Resources Ltd climbed 2.6 percent.
Domino's Pizza Enterprises soared 13.4 percent to A$13.07, a near 3 month high after the shares came out of a trading halt. Domino's bought a majority stake of its Japan franchise from U.S. private equity firm Bain Capital for 12 billion yen ($124 million) earlier this week.
New Zealand's benchmark NZX 50 index fell 0.6 percent or 25.9 points to 4,504.4.
(Reporting by Thuy Ong and Maggie Lu Yueyang; Editing by Shri Navaratnam)