Thanks Endless.
Half-time round-up:
The ASX 200 dropped more than 50 points this morning on weak overnight leads from Wall Street before bouncing off the 5380 level that has offered support for the last month.
At lunchtime the benchmark index was trading 28 points or 0.5% lower at 5403 after earlier dipping under 5379. Gold stocks -2.7% led the rout, followed by property trusts -1%, energy-0.9%, the Small Ords -0.9% and metals & mining -0.8%. I.T. was the only sector to defy the downturn, rising 0.5%.
The declines followed a modest overnight 'flight from risk' as the conflict in Iraq entered a new phase with air strikes by the Syrian military. US stocks touched record levels before falling away amid speculation that a retrace was overdue.
“A surge in oil prices can weigh on the global economy and that’s why the Iraqi conflict gets attention,” Osamu Koizumi, executive officer at Meiji Yasuda Asset Management in Japan, told
Bloomberg. “Investors want to sell into the market near a high level, but I don’t think a correction will be big because fundamentals are good.’
China's Shanghai Composite dropped 0.46%, Hong Kong's Hang Seng edged up 0.15% and Japan's Nikkei lost 0.42%. Dow futures were recently off nine points or less than 0.1%.
Spot gold declined $7.70 this morning to US$1,311.40 an ounce. August crude oil futures were at US$106.68 a barrel. The dollar was buying 93.62 US cents.
Interesting market at present with the XJO in a gentle short/medium-term downtrend but that 5380 level providing reliable support. One of the two will have to give in the days ahead. I guess such reflections are more appropriate for the XJO thread because the Independent Republic of Specmania seems oblivious to what is going on beyond its borders these days. Bit like North Korea. Wasn't always the way. All the same, well done to the GBE-surfers. It's on to my watchlist. I had three solid wins this morning in MRF, FLT and CDD but left so much on the table that it makes me nauseous to look at the latest prices. I'm all for leaving something on the table for the next man, but I didn't intend to put his entire family through university.
