The share market's losing run looks set to extend to a third session after soft Chinese economic data compounded early losses following a downturn in consumer sentiment.
At lunchtime the ASX 200 was trading 46 points or 0.8% lower at 5900 as a rebound in resource stocks was overshadowed by falls in the big banks and yield sectors. The metals & mining sector bounced 1.1%, energy 0.7% and materials 0.6%. Notable falls included property trusts -1.5%, utilities -1.5% and financials -1.2%.
The consumer discretionary sector fell 1.4% following news that the WBC/MI index of consumer sentiment fell a seasonally-adjusted 3.2% this month as February's rate cut continued to wear off.
"We must recognise that confidence is again looking vulnerable heading into the Budget announcement next month," Westpac chief economist Bill Evens told Fairfax. "Indeed, recognition that the next Budget is imminent may have contributed to this month's weakening in confidence."
While Chinese GDP figures were in line with expectations, a string of monthly gauges fell short of economists' predictions. First-quarter growth eased to a six-year low of 7% year on year from a rate of 7.3% at the end of last year. Industrial production showed year-on-year growth of 5.6% (expected: 6.9%), retail sales 10.2% (expected: 10.9%) and fixed asset investments 13.5% (13.8%).
China's Shanghai Composite pulled back 0.56%, Hong Kong's Hang Seng edged up 0.18% and Japan's Nikkei was unchanged. Dow futures were recently down four points or less than 0.1%.
Crude oil futures firmed 26 cents this morning to US$53.55 a barrel. Spot gold was $1.20 weaker at US$1,191.40 an ounce. The dollar was buying 75.99 US cents.
Been a good day for extending the vocabulary and buying specs, not so good for the broader market or fans of Percy Sledge (RIP, soul man). Can't say I like the look of the index right now - 3rd run at 6000 should have been the break-out. Trading: CMP and CAB gave bounce profits. Jury still out on TGR and MTN. ERJ came good from yesterday. MIN continued to form a base and looks promising for a rebound in the next couple of sessions.
