The share market is on track to break a four-session winning run after a modest improvement in economic growth failed to offset caution as the US moved closer to an attack on Syria.
At lunchtime the ASX 200 was 42 points or 0.8% weaker at 5155, with gains in the gold sector +1.8%, IT +0.3% and industrials +0.1% were dwarved by falls across the rest of the market. Hit heaviest were health -1.5%, utilities -1.4% and consumer staples -1.3%. Financials lost 0.5% and materials 0.3%.
Leaders of the Senate Foreign Relations Committee this morning agreed on a draft resolution giving US President Barack Obama the authority to attack Syria. If approved by the committee tonight, the resolution faces a vote in the Senate when politicians return from their summer break on September 9. Read more here.
"Markets don't like wars occurring and are concerned about the intervention that could potentially occur in Syria," a fund manager at Tyndall Investment Management in New Zealand told Bloomberg. "We're taking a little bit of risk off the table."
Regional markets also fell back as US futures remained stuck in the red. Shanghai dipped 0.13%, Hong Kong's Hang Seng 0.78% and Japan's Nikkei 0.76%. Dow futures were recently off nine points or less than 0.1%.
A mild upside surprise in second-quarter GDP had minimal impact on trade. Gross domestic product increased 0.6% for the quarter and 2.6% year-on-year, versus expectations for growth of 0.5% for the quarter and 2.4% for the year.
Crude oil futures eased 20 cents this morning to US$108.28 a barrel. Spot gold was 70 cents stronger at US$1,412.80 an ounce. The dollar was buying 91.03 US cents.
Odd sort of day. Might expect defensives to outperform in times of war/uncertainty, but they copped it hardest this morning. May just be that they have out-performed lately and the instos are taking profits where advailable. Not much to add from the earlier post regarding my trading. CTX playing out as hoped from below $19, TTS stalled in the blocks. LBY providing an elegant reminder why I prefer stocks with volume, lol. OSL will likely need a day or two. Watching BBG, FAS, MMC and PDN for opps.
