The share market is on course to end its worst week since June with a fourth loss from five sessions after the financials sector hit an eight-week low.
At lunchtime the ASX 200 was 14 points or 0.3% weaker at 5184 after earlier marking its lowest point since October 10. The financials sector was the biggest drag for a second day, losing 0.6%. Other notable moves included industrials -0.7%, property trusts -0.5%, gold +0.4% and metals & mining +0.1%.
The declines came at the end of a week of upbeat US economic data that appeared to increase the likelihood that the Federal Reserve will reduce its market-friendly stimulus spending.
"We've seen a very good string of economic data from the US in recent weeks and that suggest we're getting closer to a Fed tapering," Mark Lister, head of private wealth research at Craigs Investment Partners, told Bloomberg. "Although the general consensus is for tapering to happen in 2014, the chance of a December tapering have gone up. That will drag equity markets weaker and push bond yields higher."
Construction activity increased for a second month during November as the building industry continued to emerge from a three-year contraction. The AIG/HIA Performance of Construction Index improved 0.8 points to 55.2.
China's Shanghai Composite fell 0.35% this morning and Hong Kong's Hang Seng lost 0.21%. Japan's Nikkei gained 0.28%. Dow futures were recently up 19 points or more than than 0.1%.
Crude oil futures advanced six cents to US$97.39 a barrel. Spot gold was 90 cents stronger at US$1,227.20 an ounce. The dollar was buying 90.54 US cents.
Difficult times. The index pretty much had to bounce from this morning's low or it was likely going a lot lower. Some interesting moves in the goldies today, considering the overnight metal weakness - NCM, SLR, EVN all ahead and the others off their lows. Pre-empting a bounce in gold? Wasted session for me after yesterday's excitement. Been a pretty profitable week but it's been hard work keeping the dogs moving through the kennel. Got rid of TTS this morning. Holding another couple of barkers I'll be glad to see the back of.
