Shares are lower for a fourth straight day after a European decision to withhold aid from Greece helped send US futures sharply south.
At lunchtime the ASX 200 was off 33 points or 0.8% at 4151, bringing the loss for the week to around 200 points or 4%. Consumer discretionary stocks and property trusts were the only sectors to rise. Energy -1.7% and financials -1.2% suffered the heaviest losses.
US futures sagged this morning after European leaders announced that they would withhold the latest handout for Greece until the country has voted to accept the bailout terms agreed last week. Dow futures were recently off 125 points or more than 1%.
French President Nicolas Sarkozy told a joint news conference this morning: "Our Greek friends must decide whether they want to continue the journey with us."
International Monetary Fund managing director Christine Lagarde said this morning: "I remain convinced that the agreement reached by the leaders of the euro area at their summit last week, which includes a substantive reduction in Greece's debt burden and additional financial support for a new ambitious program, will greatly benefit Greece by helping to restore growth and create jobs. As soon as the referendum is completed, and all uncertainty removed, I will make a recommendation to the IMF executive board regarding the sixth tranche of our loan to support Greece's economic program."
Asian markets traded mixed, with Shanghai rising 0.23% but Hong Kong's Hang Seng down 2.38%. Japan's Nikkei was closed for a public holiday.
A third month of rising retail sales offered another positive sign for the domestic economy. Sales increased 0.4% in September, in line with economists' expectations.
The dollar dropped nearly a cent this morning as further pressure on the euro encouraged a rally in the US dollar. The Aussie was buying US$1.0216.
Crude oil futures slumped 80 cents this morning to US$91.51 a barrel. Spot gold was $10 weaker at US$1,726.50 an ounce.
Lots of warning signs this morning: US futures in freefall and oil and the Aussie dollar dumped in an apparent retreat from risk. Gold hit by the rising greenback. Difficult trading conditions - grinding retreats are my least favourite markets. Scalped some beer money in CEO and opened a speculator in CSR that has gone nowhere so far. Also added a few NEU on pullback in anticipation of another up-leg in a day or two. Watching BSL and ICX for possible scalp entries.
