Australian shares hit a new post-GFC high before turning negative as US futures slumped following fresh trade threats from the White House.
The ASX 200 nudged 6251, its strongest level since January 2008, before fading to a mid-session loss of 15 points or 0.2% at 6210. The fall came as S&P 500 futures dropped 13 points or 0.47% in the US following reports that President Trump intends to escalate his trade stand-off with China by banning Chinese investment in US technology companies. Read more here.
"What is clear from weekend developments is that US President Trump is unlikely to stop any time soon on his tariffs threats," analysts at Singapore's OCBC Bank told CNBC. "China's policymakers are stepping up to counter the tariff tantrum with domestic stimulus measures."
Asian markets hit reverse. China's Shanghai Composite slipped 0.16%, Hong Kong's Hang Seng 0.61% and Japan's Nikkei 0.37%.
CBA was the biggest drag on the local market, falling 2% after announcing a wave of managerial changes and plans to spin off its wealth management and mortgage broking businesses. The financial sector lost 1.1%. Also weak: health -0.5%, consumer staples -0.4% and telecoms -0.4%. The energy sector improved 1.5% and metals & mining 1.2%.
Crude oil futures dipped 26 cents or 0.38% this morning to US$68.32 a barrel. Gold futures put on $1 or 0.01% to US$1,271.70 an ounce. The dollar was buying 74.19 US cents.
Trading: I was as toothless as Poland's strikers. As feckless as Panama's defence. As unreliable as the World Cup video ref review system. (Enough World Cup metaphors? I'll stop now.) Should have got something out of CSV - he who hesitates has bread and water for lunch. NTI looks like there was a trade in it but you had to be lightning fast in and out? Bring on July.
