The share market is heading for its worst week in a year as investors continued to dump yield stocks despite rebounds in US futures and Asian markets this morning.
At lunchtime the ASX 200 was 78 points or 1.5% underwater at 4984 for the day and more than 190 points or about 3.6% for the week following four days of declines. The year's best-performing sectors copped the worst of the selling: telecoms fell 2.4%, consumer discretionary 2.3%, utilities 2.1% and financials 1.6%. Gold, up 2.8%, was the only sector to advance. The Small Ordinaries hit its lowest level since last July.
"The relative calm in the US [overnight] has done little to reassure the local investors though, and our market remains under pressure," CMC Markets manager William Leys told Fairfax. "The financials have resumed their downward trajectory at pace, and are weighing on the index. It appears as though the chase for yield has fallen from favour, with defensive stalwarts such as Telstra and Wesfarmers also weaker."
Asian markets opened in positive territory but the Nikkei was the only market to make serious inroads into yesterday's losses. Shanghai edged up 0.32%, Hong Kong's Hang Seng 0.01% and the Nikkei 2.65%. Dow futures were recently up 26 points or nearly 0.2%.
Crude oil futures eased 13 cents this morning to US$94.25 a barrel. Spot gold firmed $5.50 to US$1,394.90 an ounce. The dollar was buying 96.77 US cents.
Another wild ride this morning, with opportunities aplenty to win or lose big. I'm trading mid-caps I've never touched before because they don't usually offer enough range or volatility - hasn't been a problem this week. Back for another look at IIN after an earlier win in MTU. Also scored in RFG, CRZ, SEK and TAH. Still holding REA, PRY, IIN and DMP. Would like to think this could turn into a capitulation day, but suspect we're not quite there yet. Thank-you to the posters who pointed out the public holiday in the US on Monday, something I'd overlooked.
