Australian shares collapsed to a 14-week low this morning with uranium shares leading falls as Japan's Nikkei index tumbled more than 5%.
At lunchtime the ASX 200 was off 49 points or 0.9% at 4604 after earlier touching 4564, its lowest level since December 1. All sectors were trading lower, with resource stocks and small caps falling hardest.
Uranium miners were sold off as damage at Japan's earthquake-affected nuclear power stations raised questions over demand for nuclear fuel. Shares in Energy Resources of Australia were recently down 9.3% and Paladin was off nearly 13%. Insurers also lost ground.
"The earthquake and subsequent tsunami in Japan comes at a nervous time for uncertain markets across the globe," Ben Le Brun, market analyst at CMC Markets told Fairfax. "Investors are already losing confidence after several market-moving events recently, including tensions in the Middle East leading to a spike in oil prices and ongoing concerns in the euro-zone over sovereign debt."
Japan's Nikkei share index slumped 5.1% in initial trade but pared losses to trade recently at -4.4%. Shanghai was off 0.14% and Hong Kong's Hang Seng 0.18%. Dow futures were recently at -51 (source: Bloomberg).
Crude oil futures maintained Friday's downward momentum this morning, falling $1.21 or 1.2% to $99.95 a barrel. Spot gold was $6 stronger at $1,427 an ounce. The dollar was buying US$1.009.
Sheesh, what a morning. Plenty of opportunities to win or lose big today. As usual, I was crawling through the wreckage, buying shares that had fallen hard and hanging on for rebounds. LNC and CGF were the pick of the trades, despite premature exits in both. Needed two attempts at both BMN and AEE to turn a profit. Added some CRE despite having egg all over my face after suggesting it was capitulating in the middle of last week. (Only wrong by three days and another 50% fall, lol. Not my finest call.)
