The share market plumbed a seven-week low this morning as a bounce in US index futures failed to settle nerves on Asian markets.
At lunchtime the ASX 200 was 70 points or more than 1.3% in the red at 5117 after bouncing off 5100. Gold stocks +2.4% proved the only haven from a heavy downswing that stripped 1.8% off health stocks, 1.7% off materials and consumer discretionary, 1.6% off metals & mining and 1.4% off financials and industrials.
"The risk-off sentiment is now well entrenched across the globe," Matthew Sherwood, head of investment markets research at Perpetual, told Bloomberg. "US manufacturing data disappointed even the most pessimistic economist and this suggests that we are not at the end of this recent bout of market volatility."
US futures staged a partial recovery this morning from Wall Street's worst session since June. Dow futures were recently up 42 points or 0.3%.
Hong Kong's Hang Seng tumbled 2.15% in early trade and Japan's Nikkei pared an opening loss of more than 3% to 2.67%. China's Shanghai Composite remained closed for Lunar New Year holidays.
Crude oil futures dropped another 10 cents this morning to US$96.58 a barrel. Spot gold was 30 cents weaker at US$1,256.20 an ounce. The dollar was buying 87.45 US cents.
You know your expectations are low when a 70-point dive doesn't seem too bad. Good to see the 5100 level act like a trampoline, even though the bounce was modest. No additions to my buys as mentioned earlier. Settled for three pips in MYR. Still holding IAG.
