Afternoon trading Nov 13

Thanks Oscar and morning crew.


Half-time round-up:

Shares drifted lower for a second day as market heavyweights ANZ and WBC traded without their dividends.

The ASX 200 declined six points or 0.1% to 6024, positioning the market for possible back-t0-back losses for the first time in five weeks. The local market's heavy dependence on the big banks was evidenced by the impact of a 0.5% drop in the financial sector as two of the big four went ex-dividend. That fall overshadowed gains in the likes of gold stocks +0.8%, metals & mining +0.7% and consumer staples +0.3%.

Adding to downward pressure was a downbeat end to global trade on Friday amid concerns over stretched valuations and a possible delay in the much-anticipated US corporate tax cut. The S&P 500 lost 0.09%, but futures this morning rallied 3.75 points or 0.15%.

"All eyes are on what the Senate and the House of Representatives will do on their tax bills,” Nobuhiko Kuramochi, chief strategist at Mizuho Securities in Japan, told Reuters. “That there is debate is not surprising at all. Still, it is an uphill moment for markets.”

China's Shanghai Composite advanced 0.33% and Hong Kong's Hang Seng 0.31%. Japan's Nikkei shed 0.59%.

Crude oil futures rose 11 cents or 0.19% this morning to US$56.85 a barrel. Gold futures added $1.80 or 0.14% to US$1,276 an ounce. The dollar was buying 76.5 US cents.


The market looks due for a breather but you couldn't call today's action a rush for the exits. The value of the bank dividends would pretty much account for the fall, I should think. The Russell 2000 and Dow Transports are sending warning signals about the health of the American market, but the major indices have yet to follow suit. Trading: another very straightforward session. Trades in DCC, BUB, ASN and BDA.