Thanks Endless. Half-time round-up:A second day of falls as...

Thanks Endless.

Half-time round-up:

A second day of falls as euro-jitters rattled Asian markets has Australian shares near a six-month low and on track for their worst monthly return since the GFC.

At lunchtime the ASX 200 was down 39 points or 1% for the day at 4055 and more than 8% for the month. A close around these levels would cement the index's poorest month since September 2008 when Lehman Brothers collapsed.

Blue chips led the rout, dragging financials down 2%, metals & mining 1.5% and the S&P/ASX 20 1.3%. By comparison, the Small Ordinaries was up 0.4%. Consumer staples +0.8% and health +0.4% were among a handful of defensive sectors to outperform the general market.

Asian markets offered little resistance to overnight falls in Europe and the US as the odds firmed that Spain will be the next euro-zone member to seek a bailout. Japan's Nikkei was hurt by a smaller-than-expected increase in industrial output last month. The Nikkei fell 1.84%, Shanghai 0.69% and Hong Kong's Hang Seng 1.35%. Dow futures were recently off eight points or less than 0.1%.

"Hopes that Spain can manage without some sort of bailout package are fading fast," Capital Economics European economist Mark Miller told MarketWatch.

The dollar hit a six-month low this morning before paring falls amid mixed domestic economic news. The Aussie was lately buying 96.99 US cents after falling as low as 96.79 US cents.

Private capital expenditure for the March quarter was better than economists expected, increasing by 6.1% versus predictions for growth of 4%. Private sector credit growth for April also exceeded expectations, rising 0.4%. However, building approvals for April sagged 8.7%. Economists had been tipping a rise of 0.3%.

Crude oil futures recovered 11 cents this morning to US$87.58 a barrel. Spot gold was $2 weaker at US$1,561.50 an ounce.


The XJO has had a couple of attempts at getting off the canvas but can't find any momentum. Recovered well yesterday and there's plenty of time left this session, so there's hope. I'm one from two trades so far this session. BTR bounced nicely but PLV appears to have one determined seller.