Australian stocks slumped for a second day in early trade as the global sell-down reached China.
At 1pm the ASX 200 was down 37 points or 0.77% at 4861. Resource-sensitive sectors were hit hardest, including gold (-2.1%), energy (-1.9%), metals & mining (-1.3%) and materials (-1.4%). Traditional defensive sectors found buyers - telecoms +1%, property trusts +0.4% and utilities +0.2%.
Engineering group WorleyParsons slumped more than 11% after it downgraded profit guidance, blaming weak conditions in its American markets.
Asian markets followed Wall Street lower. Japan's Nikkei lost 0.9% after national airline JAL plunged 81% in early trade on fears that it is about to be delisted. Shanghai,w which rallied strongly yesterday, lost 1.88% and Hong Kong's Hang Seng 1.5%. Dow futures were neutral at +5.
Crude oil futures continued to slide, down another 65 cents this morning to $79.85 a barrel. The spot gold price was up $1 at $1,128.30 an ounce.
Happy to see less blood on the floor than seemed likely. Had a reasonable morning. Caught early bounces on WOR and NWH but should have held both longer. Small positions in GUN and ERM. Less happily, I maintained my undistinguished record of always buying MML too early. Should probably take it off my watchlist.
