Gains in defensive sectors and positive economic data helped the Australian share market pare early losses this morning.
At lunchtime the ASX 200 was trading 12 points or 0.2% in the red at 5410 after earlier falling as low as 5391. Declines in cyclical sectors were offset by advances in gold +2.5%, utilities +0.5%, consumer staples +0.4% and energy +0.3%. The trading pattern broadly mirrored events in the US on Friday, where there was significant rotation out of momentum stocks into defensives.
A big week of domestic economic data got off on a positive note, with job ads increasing rising for a second month and the construction industry contracting at a slower pace. Total job advertisements increased by a seasonally-adjusted 1.4% last month. The AiGroup/HIA Performance of Construction Index lifted two points to 46.2 last month but remained below the 50-point level that separates expansion from contraction.
"There is now clearer evidence that labour demand is strengthening," ANZ chief economist for Australia Ivan Colhoun told Fairfax. "Importantly, there has been strength in job advertising in some key industries, including construction, education and health."
Hong Kong's Hang Seng fell 0.49% and Japan's Nikkei lost 1.46%. China's Shanghai Composite was closed for a public holiday. Dow futures were recently down 15 points or 0.1%.
Crude oil futures retreated 28 cents this morning to US$100.86 a barrel. Spot gold was 50 cents stronger at US$1,302.80 an ounce. The dollar was buying 92.86 US cents.
Good to see an early candidate for this year's Who-Needs-A-Proofreader? Award for semi-literate market announcements. Step up, long-term favourite CDU, winner of the award for the last five years. Surely there must be someone at their head office with a better grasp of grammar and detail? Back to trading: the early weakness threw up a few bounce candidates, although those I took were fleeting. Been in and out of MSB, IPP and IBY. Still holding HCH.
