The ASX hit a six-week low this morning despite a broadly positive start to a big week of economic data.
At lunchtime the ASX 200 was trading 44 points or 0.8% weaker at 5276, a level last seen in mid-October. Property trusts led the decline, falling 1.9%, followed by financials -1.1%, consumer discretionary -1.1% and utilities -1%. Gold +2.1% and consumer staples +0.1% were the only sectors to resist the headwinds as traders parsed a slew of economic reports.
Building approvals dropped 1.8% in October, a smaller decline than most economists expected following a 16.9% surge in September. Company profits improved 3.9% over the quarter. The rate of inflation last month was a mild 0.2%.
Growth in house prices continued to moderate, increasing just 0.1% during November, compared to increases of 1.3% in October and 1.6% in September. Manufacturing contracted for the first time in three months. The AIG manufacturing index fell 5.4 points to 47.7 last month.
The index briefly pared its loss following the 12.45pm EST release of November factory data for China that came in stronger than expected. HSBC's final manufacturing PMI rose to 50.8 from 50.4, ahead of forecasts.
The reaction from the dollar suggested forex traders saw the data in a more positive light than their equity counterparts. The dollar was lately buying 91.55 US cents, a rise of nearly half a cent.
China's Shanghai Composite edged up 0.02%, Hong Kong's Hang Seng gained 0.59% and Japan's Nikkei dipped 0.08%. Dow futures were recently up 31 points or 0.2%.
Crude oil futures rallied 34 cents this morning to US$93.12 a barrel. Spot gold was $3.70 weaker at US$1,247.70 an ounce.
Bearish morning. The economic data gave the market a few reasons to buy this morning but the broader trend remains negative. There was a notable surge of selling when the index broke the old November closing low just before 11.30am. However, the downtrend is so gentle for now that buying the dips remains profitable. I snagged JBH at $19.40, MAD at 46.5c and FGE at 61c. Wish every day was as straight-forward.
