Australian stocks fell for the first time this week following an unexpected decline in consumer confidence and mildly disappointing Chinese export data.
At lunchtime the ASX 200 was 13 points or 0.3% weaker at 4963 as surges in the big two miners were offset by falls across the broader market. The metals & mining sector jagged 2.5% as BHP rallied for a fourth day, its best run in at least two months. Gold stocks rose 1.5% and industrials 0.2%.
Consumer stocks retreated after a drop in the latest WBC-MI consumer sentiment survey. The index fell to 104.9 points this month from a two-year high of 110.5 points in March.
"This result emphasises how fragile consumer confidence has become in the current environment," Westpac chief economist Bill Evans told Fairfax. "Reasons for the April fall are probably best assumed to be around global concerns and an associated correction in the share market."
The Shanghai Composite came off its high after a surge in imports and weaker-than-expected exports produced a trade deficit last month. Imports were up 14.1% from the same time last year, well ahead of economists' predictions of growth of around 5-6%. Exports were up 10%, just below the consensus expectation of 12% and down from February's 22% rise. Read more here.
The Shanghai Composite was lately up 0.03%, Hong Kong's Hang Seng 0.39% and Japan's Nikkei 0.7%. Dow futures were recently off five points or less than 0.1%.
Crude oil futures slipped three cents this morning to US$93.97 a barrel. Spot gold was $2.90 stronger at US$1,587.90 an ounce. The dollar was buying $US1.051.
Unusual to see sector divergence as wide as it has been this morning. Normally the XJO gets dragged along in BHP's wake. The Small Ords is taking a breather after three days of modest gains. SYR seems to be the only big mover with any significant volume. I'm on that from higher levels, and so resorted to subsistence trading a few mid-caps. SVW, GPT and PTM offered low-risk entries. It's not lucrative, but keeps the trading account ticking over.
