The share market was struggling to break a two-week losing run after sharp falls in Asian markets capped a partial recovery this morning.
At lunchtime the ASX 200 was 17 points or 0.35% lower at 4977 after financials -0.5%, energy -1.1% and most defensive sectors lost ground. Materials +0.3% and health +0.4% were the pick of the rises. The index needs to close above 4967 to avoid a third week of losses.
A partial rebound in the index stalled as markets in China and Hong Kong opened deep in the red after European troubles dominated the overnight headlines. Shanghai plunged 2.41%, Hong Kong's Hang Seng 1.09% and Japan's Nikkei 1.01%. Dow futures were recently off 22 points or 0.15%.
"The sentiment about Europe is bad," Stephen Halmarick, head of investment markets research at Colonial First State Global Asset Management, told Bloomberg. "The uncertainty created by a bank bailout in Cyprus and the inability in Italy to form a government is weighing on the markets, reminding us that Europe is going to be a negative influence for years to come."
Crude oil futures rallied 17 cents this morning to US$96.68 a barrel. Spot gold was 30 cents stronger at US$1,605 an ounce. The dollar was buying $US1.0454.
Tough morning for many of the recent spec runners. My "hot" watch-list is flashing more red than green. Still, there were opportunities for those prepared to buy pullbacks. I traded the first bounce in LNC and got CVN at the low. At the more dangerous end of the trading scale, I even squeezed a pip out of VOR. Nice end to a choppy week. (I swear that's my last surgery gag.)
