Australian shares suffered their heaviest fall in more than three weeks this morning amid deteriorating U.S. futures and reports of flagging investor confidence.
At lunchtime the ASX 200 was down 39 points or 0.8% at 4832 after a broad sell-off dragged all sectors lower. Losses were heaviest in the resource sectors - gold shares slid 1.6%, metals & mining 1.5% and materials 1.4%.
Investor confidence slipped this quarter, according to a report out this morning. The Investment and Financial Services Association CoreData Investor Sentiment index dropped to 2.9 points from 7.4 points in the final quarter of 2009. The index had advanced in three of the four quarters last year.
CorData analyst Kristen Paech told Fairfax: "The index shows an unexpected decline in investor sentiment, given the markets have continued on an upward trajectory since the end of 2009... While sentiment remains positive, the results indicate that investors are cautious about the sustainability of the current pace of economic growth."
U.S. futures are currently flagging a weak start to trade tonight after President Obama's health-care package moved a step closer in the House of Representatives this morning. House lawmakers approved a procedural rule that will allow final House debate and a vote on the legislation later today. Dow futures were recently at -49.
Asian markets were mixed. Japan was closed for a holiday but South Korea's Kospi slid 0.6%, Hong Kong's Hang Seng dropped 1.17%, while Shanghai added 0.34%.
Key commodity prices remained under pressure as the U.S. dollar continued last week's late bull run. Crude oil futures dropped 53 cents or 0.66% this morning to $80.15 a barrel. The spot gold price was recently off $1 at $1,106.90 an ounce.
Pretty modest effort here this morning. Decent scalp in MOG off the lows. DOW has had good intraday volatility recently - conditions today may not suit but I'm back in near the low. Currently underwater in a buy in IPL.
