A muted reaction to a record profit from BHP offset gains in the big banks and helped drag Australian shares lower for a second morning.
At lunchtime the ASX 200 was down 4 points or 0.1% at 4927 as gains for financial stocks, gold miners and telecoms were outweighed by falls among the big miners and health-care companies.
Shares in BHP were recently down nearly 2% despite a record half-year profit of $US10.5 billion and an increase in the dividend it will pay shareholders.
"With the US pulling back a little bit, we are taking a little pause for breath at the moment," Bell Potter Securities client adviser Chris Kimber told Fairfax. "Earnings in Australia have been pretty mixed. Certainly the banks have reported well and BHP's numbers are pretty good but they're not going to blow the light out by any means. That's why the stock is down a little bit today."
Asian markets edged higher despite a weak overnight lead from the US. Japan's Nikkei rallied 0.39% as a weaker yen helped exporters, Shanghai added 0.07% and Hong Kong's Hang Seng was up 0.5%. Dow futures were recently at +5.
Crude oil futures recovered 34 cents this morning to $84.63 a barrel. Spot gold was $1.50 weaker at $1,372.50 an ounce. The dollar was buying 99.89 US cents.
The banks are doing the heavy lifting today. No real surprise after another down night on the CRB. All my action came in the opening flurry - quick bounce scalps in BTA and PDN, followed by a nice bounce in FNT cashed in too early.
