Australian shares joined a global pullback this morning and held their losses after China's inflation eased more than economists expected.
At lunchtime the ASX 200 was down 51 points or 1.2% at 4229 and on track for its third losing week in the last four. Mining shares copped the worst of the selling after overnight falls in oil and metals prices. The metals & mining sector fell 2.2%, gold 1.7% and energy 0.9%. The financial sector fell 1.1% after the big four banks confirmed they will pass on Tuesday's 0.25% cut in the cash rate.
China's economy may be slowing faster than economists predicted after sharp falls in consumer and producer inflation last month. The consumer price index dropped from 5.5% to 4.2%, lower than the 4.6% economists' consensus, and the producer price index retreated from 5% to 2.7%.
Japan's Nikkei fell 1.53% after a downward revision in third-quarter growth, Shanghai dropped 0.17% and Hong Kong's Hang Seng 1.72%. Dow futures were recently up 19 points or less than 0.2%.
Early reports from a European Union summit said leaders were working on a "fiscal compact" to improve confidence in economic management in the euro-zone and encourage the European Central Bank and International Monetary Fund to boost their involvement. MarketWatch said agreement had been reached on tighter budget and debt rules.
Crude oil futures rallied 41 cents this morning to US$98.39 a barrel. Spot gold was $2.10 stronger at US$1,714.10 an ounce. The dollar was buying US$1.0177.
Been a profitable end to a mixed week. SRR had my name all over it after that plunge. Was in too early, out too early but still did well. Also caught less profitable bounces in MML and MBN.
