Stocks took a breather this morning as investors switched from recent high-flying sectors into more defensive plays.
At lunchtime the ASX 200 was down 4 points or 0.09% at 4304, dragged lower by falls in the big banks, miners and retail stocks after a poorly-received profit result from DJS. The strength in the market lay in health (+2.4%), property trusts (+1.6%), telecoms (+1.0%) and consumer staples (+0.4%).
Asian markets were mixed. The Nikkei was marginally down at -0.08% but the Hang Seng was playing catch-up, advancing 0.93%. Dow futures were recently down 3 points. Gold slipped $1.60 to $965.20. Crude oil futures crept higher to $71.73.
A mixed bag here this morning. Lovely bounce trade in HNR - in 17, out 19.5. Also caught bounce in FXJ. AGK and AMC from yesterday and FRS from this morning are slowly coming good. Less positively, I figured SFR was due some relief after three days of double-digit falls. So far I figured wrong but it may be turning right now. Also missed getting filled in MEO at 45.5.
Potential overnight holds: the move away from cyclicals into defensives suggest some of the big boys are preparing for a pullback. Doesn't mean it will happen but we may be in for a few uncertain days before Thursday's US employment figures. SFR could be a hold but only if it closes around 1.80 or higher IMO.
