Australian stocks are lower after a morning of retreating regional markets, sagging business confidence and an earthquake in New Zealand.
At lunchtime the ASX 200 was weaker for the third straight session, down 41 points or 0.8% at 4859 despite a big jump in market heavyweight BHP, which announced its largest deal in six years.
BHP's 2%+ rise helped the metals & mining and material sectors buck a downtrend that sent all other sectors lower. Consumer staples and financials were hardest hit, falling 2.1% and 1.7%, respectively. Insurers were sold off after an earthquake measuring 6.32 hit Christchurch.
"The situation in Libya is causing increasing nervousness and there's been a general selling associated with that," CMC Markets strategist Ric Spooner told Fairfax. "BHP is holding the fort, so to speak, as far the index is concerned. It is up after the greater clarity provided over the buy back plan this morning."
Asian investors fell back as oil continued its sharp overnight spike and US futures pointed to a weak open to tonight's trade. Japan's Nikkei was recently down 1.95%, Shanghai 0.12% and Hong Kong's Hang Seng 1.34%. Dow futures were recently at -87.
Crude oil futures rallied another $1.33 this morning to $92.75 a barrel. Spot gold was 40 cents stronger at $1,407.40 an ounce. The dollar was weaker, buying US $1.005.
In economic news, new data this morning showed business confidence and conditions were deteriorating last quarter even before the Queensland floods. A NAB business survey showed business confidence dropped four index points to five and business conditions fell three points to two.
Looks like the correction has begun - unless of course Wall Street decides otherwise. It's rare to see our market down this much with BHP trading positive. Spent the morning trying to pick lows and sell into bounces. Worked well with OVR, CFE and KAS twice. Waiting for recoveries in AUQ and GLF.
