Thanks Endless. Half-time round-up:Shares slumped to a...

Thanks Endless. Half-time round-up:

Shares slumped to a three-week low this morning as a profit warning from Billabong added to retailers' grief and Asian markets pulled back ahead of tonight's French bond auction.

At lunchtime the ASX 200 was down 90 points or nearly 2.2% at 4069 and on track for its weakest close since November 28. All sectors lost ground, led by consumer discretionary stocks -3.2%, the Small Ords -3.2% and energy -2.9%.

Asian markets retreated as France prepared to sell treasuries and European finance ministers raced a deadline for funding the latest rescue fund. Japan's Nikkei dropped 0.73%, Shanghai 1.46% and Hong Kong's Hang Seng 1.73%. Dow futures were recently off 28 points or 0.2%.

"There's not going to be any upside until this situation is fixed," Nick Maroutsos, co-founder of Sydney-based Kapstream Capital, told Bloomberg. "Given that France might get downgraded, or we could see further sovereign defaults in the coming months, ultimately it's going to put more pressure on the banks in the European region and also more pressure on the global environment."

Crude oil futures plunged another 68 cents this morning to US$93.10.8 a barrel. Spot gold was $6 weaker at US$1,595.50 an ounce. The dollar was buying 99.31 US cents.


An unexpectedly gnarly morning here and a headscratcher when you look at how other markets are performing: restrained falls in Asia and barely a dent in US futures. None of the usual news wires are offering any real insight. Minor wins here in WHN and COE obliterated by hidings in BBG, AAC and MML. Waiting for any recoveries to cut losses. Ouch.