Australian shares pared yesterday's gains as modest moves in the big banks and miners cancelled each other out and Asian markets retreated.
At lunchtime the ASX 200 was trading seven points or 0.1% lower at 5457 and within reach of a second straight weekly rise. Minor gains in resource stocks and defensive sectors were offset by falls in financials, consumer stocks and industrials.
Asian markets fell after a US Federal Reserve policymaker last night warned that interest rates may rise sooner next year than market analysts anticipate. China's Shanghai Composite dropped 0.39%, Hong Kong's Hang Seng 0.14% and Japan's Nikkei 0.62%. Dow futures were recently down ten points or less than 0.1%.
“It’s a timely warning that the time for the Fed to start raising interest rates is drawing nearer,” Stephen Halmarick, head of investment markets research at Colonial First State Global Asset Management,told Bloomberg. “I don’t think that risk is factored into the market sufficiently.”
Crude oil futures bounced 22 cents this morning to US$105.78 a barrel. Spot gold slipped 60 cents to US$1,316.60 an ounce. The dollar was buying 94.23 US cents.
A low-key session to finish a positive week. I had a quick early win in MKB - a gift at the first dip to 20c - then spent the rest of the morning waiting for another trading idea to stumble into my head. Nope, nothing. Scary how little goes on in there some days.
