A string of disappointing earnings results this morning sucked the wind out of this week's share rally.
At lunchtime the ASX 200 was down 22 points or 0.47% at 4645 after Qantas reported falling profits, Sims Metal Management issued an uncertain outlook and Lihir Gold reported a loss. Most sectors were trading lower, with the worst hit including gold -2.3%, metals & mining -1.4% and materials -1.2%. Defensive sectors such as telecoms, utilities and consumer staples managed gains.
Qantas suffered its heaviest fall in 10 months after reporting a 72% collapse in first-half net profit. Shares were recently down nearly 7% after the airline said it would not pay a dividend.
In economic news, business confidence has hit a 15-year high. The NAB survey for the December quarter rose two points to 18, its highest level since 1994.
Elsewhere, RBA Assistant Governor Phil Lowe has tipped 20 more good years for Australia from Chinese urbanisation. "I am quite optimistic that story has some decades to run and that underlies much of the positives for the Australian economy," Dr Lowe told a forum this morning, according to Fairfax. "For the next 20 years, on average, it is going to be a good 20 years for China and for us."
Japan's Nikkei was recently up 0.2% after dipping in and out of positive territory. Dow futures were at -12.
Gold and oil were pressured by further gains for the U.S. dollar this morning. The spot gold price slid another $13.30 or more than 1% to $1,100.50 an ounce. Crude oil futures dropped 40 cents to $77.10 a barrel.
A reasonable morning of scalping here but nothing like Aksier's 8/8 profitable trades in NUP - phenomenal effort, mate! I caught SGM and IFM on the bounce for nice profits. Holding DOM from 2.91 and AKK at break-even.
