The days of the V-shaped recovery after a sell-off seem a distant memory as this bear market grinds ever lower. US markets flirted with positive territory overnight before sinking around 0.5% into the close for a fifth consecutive day of losses. Banks, utilities and airlines lost ground, while gold miners made up some of Monday's losses despite a fall in the price of gold.
Oil dipped below $40 before spiking $1.50 or nearly 4% higher above $41.20. Gold continued to drop away from recent highs, losing nearly 3% at $913.60. There were positive signs in base metals, with copper leading a charge higher. Gold miners aside, there is a pretty good lead for our resources sector today.
Our market seemed to price in a US rally yesterday, so it's no surprise that the SPI closed down 25 points at 3146.
There were a few positive signs among some beaten-up stocks yesterday with MQG, QBE, GMG and AIO notable risers. I'm watching BLY, GPT and AMP this morning for signs of reversal. I suspect AMP was sold down on expectations of a capital raising but they have opted to issue new debt securities. Friday's 16 cent dividend may also attract support today or tomorrow, like QBE did yesterday.
