A share market rally from three-week lows stalled this morning as news of a slowdown in Chinese industrial output hit resource stocks
At 1pm EST the ASX 200 was six points or 0.1% lower at 5831 after earlier hitting 5806, the index's weakest reading since April 20. A promising recovery faltered following the midday release of economic data showing Chinese growth stuttered last month. Industrial production increased by a lower-than-expected 6.5% on the same month last year, compared to growth of 7.6% the previous month. Economists had expected growth to ease to 7%. April retail sales and fixed asset investments were also weaker than anticipated. Read more here.
The Chinese miss helped drag the metals & mining sector down 0.6% and materials 0.4%, offsetting gains in telecoms +0.9%, financials +0.2% and utilities +0.3%. The dollar also pared gains, lately trading at 74 US cents.
China's Shanghai Composite took the data in its stride, last up 0.2%. Hong Kong's Hang Seng added 0.46%, while Japan's Nikkei dipped 0.21%. Dow futures were recently up 32 points or 0.15%.
Crude oil futures began the week with a modest rise of 57 cents or 1.19% to US$48.41 a barrel. Gold futures edged up $2 or 0.16% to US$1,229.70 an ounce.
Unusually large miss by the Chinese economic data nipped the ASX reversal in the bud. China still showing good growth, but the recent run is softening. Trading: caught the bounce in ICG for a good start. Also took AHY, but no easy money there yet.
