Australian shares wavered this morning as most regional markets lost ground despite overnight gains in US shares and metals.
At lunchtime the ASX 200 was off 3 points or 0.1% at 4266 after spending the morning in a narrow 21-point range. Small caps and miners edged higher while banks, oilers and most defensive sectors declined.
"We are looking at a mixed market today," RBS Morgans private client adviser Bill Bishop told The Australian. "The stock market is a little bit uncertain. It is not all doom and gloom, but it just feels a bit like it."
Asian markets were mixed after Japanese industrial production improved less than expected last month. Japan's Nikkei fell 0.4%, Shanghai lost 0.27% and Hong Kong's Hang Seng added 0.27%. Dow futures were recently up 2 points.
In domestic economic news, house prices declined again last month amid continuing consumer gloom over the global economy. Capital city home prices deteriorated 0.6% following a seasonally-adjusted 0.3% fall in June. Prices have fallen 3.4% this year, according to the RP Data-Rismark report. A separate report showed housing credit growing at its slowest pace since records began in 1976.
Crude oil futures eased 37 cents this morning to US$88.42 a barrel. Spot gold was $4.50 softer at US$1,833.40 an ounce. The dollar was buying US$1.068.
A wishy-washy, directionless morning. Blah. VRX appears to have been the trade of the morning - well done to those who caught it. I had scalps in KGL and WHC. Also took a first tentative buy in MUE - market didn't like the earnings report but NTA at 35c and an RSI in oversold territory caught my attention. Tight stop.
