The share market is on track for its heaviest fall in a month as regional markets respond to overnight falls on Wall Street and in key commodities.
At lunchtime the ASX 200 was 61 points or 1.2% weaker at 5044, the index's largest decline since a 90-point plunge on July 3. A broad reverse saw all sectors turn lower. Gold stocks slipped 3.8%, metals & mining 2%, industrials 1.6% and financials 1.4%.
"There is a cautious tone to markets developing as the recent equity rally struggles to maintain momentum," Matthew Sherwood, head of investment research at Perpetual Investments, told Bloomberg. "The sell-down sentiment seems to be one of caution, rather than panic."
US futures declined with Asian markets this morning. Dow futures were recently off 32 points or 0.2%. Shanghai eased 0.03%, Hong Kong's Hang Seng 0.25% and Japan's Nikkei 1.95%.
June home loans underlined the recent pick-up in the housing market. Loan approvals increased by 2.7% from the previous month, more than the 2% rise predicted by economists.
Crude oil futures receded 35 cents this morning to US$105.36 a barrel. Spot gold was $5.70 weaker at US$1,276.60 an ounce. The dollar was buying 89.64 US cents.
Another gnarly, risk-off morning. Interesting to see a few of the defensives copping a hiding. Dunno if that's foreign money exiting for currency reasons or just old-fashioned profit taking. I normally do fairly well in these sorts of conditions but this market is not really rewarding bargain hunting just yet. Caught JHX at the low for 10 pips but similar set-ups in TAH, AAC and MYR have yet to deliver. Was lucky to get out of MBN with a profit, plus AQO from yesterday. Also holding GGG and MEU. In other words, lots of action, not necessarily much profit.
