The share market limped towards its first losing week in three as falls in the big miners, Woolworths and Wesfarmers outweighed gains in most sectors this morning.
At lunchtime the ASX 200 was one point or less than 0.1% ahead at 5625 following a low-volume, low-volatility session with the index stuck in a narrow 15-point trading range. The index ended last week at 5645 and has tracked sideways for most of this week ahead of a long weekend in the US for Labor Day.
The consumer staples sector sagged 2.2% as WES traded without its dividend and WOW received a thumbs-down for its full-year earnings. A 0.6% decline in the metals & mining sector helped offset rises in industrials +0.7%, property trusts +0.5% and financials +0.3%. US and European markets lost ground overnight after Ukraine accused Russian troops of invading its eastern border.
“Geopolitical risk reared its ugly head yet again,” Stan Shamu, strategist at IG, told Bloomberg. “News that Ukraine-Russia tension is flaring up again sharply spooked investors."
Japan's Nikkei lost 0.61% following a string of disappointing economic signals this morning, including a fall in household spending, flat inflation and a manufacturing miss. China's Shanghai Composite rallied 0.42% and Hong Kong's Hang Seng lost 0.1%. Dow futures were recently up 16 points or 0.1%.
Crude oil futures edged up seven cents this morning to US$94.64 a barrel. Spot gold was $1.10 weaker at US$1,288.90 an ounce. The dollar was buying 93.49 US cents.
A ho-hum session to end a ho-hum week so far as the top end of the market is concerned. A sideways drift to consolidate two weeks of strong gains. More life at the spec end, although I found trades hard to find today. I like days with lots of price alerts going off and it has been quiet as the grave here today. Wanted PSY, TON and BCT a little lower. Missed a few more marginal trades that would have paid off. Got something out of a 'sleeper' that stretched its legs - working on finding a few more of those to keep the account ticking over. Only buy was MEP and exited that in a hurry for a small loss. Gotta say, I missed the 'Thumbs down' button reading some of the more outlandish price predictions this morning. Nothing wrong with offering a target if it is supported by technicals but please provide reasons. Otherwise it just reads like ramping/wishful thinking.
