Morning traders. Welcome to the final session of a long and - hopefully for most - profitable year. A reminder that trading on the ASX ceases today at 2.10pm (including auction). A very happy new year to all, wherever you welcome 2014.
Market wrap:
Shares have flat leads for the last session of 2013 following declines in key commodities and a directionless night on Wall Street.
The March SPI 200 futures contract retreated four points or 0.1% to 5322 as oil and most metals fell back, US stocks hovered near all-time highs and tropical cyclone Christine made landfall close to the Pilbara.
The S&P 500 was little changed on the penultimate session of its best year since 1997, dipping 0.02% or less than a point. The index has improved roughly 29% during 2013. The Dow squeezed out a gain of 26 points or 0.16% for its 51st record close of the year. The Nasdaq lost 0.06%.
"It's a slow market right now without any dramatic news and I don't see much happening between now and trading through close [tonight]," John Carey, fund manager at Pioneer Investment Management in the US, told Bloomberg. "Then we're off to the races in the new year."
Trading volumes were around a third lower than average and economic data had little impact. Pending home sales increased in November for the first time in six months but by less than analysts predicted. Pending sales increased by 0.2%, versus a median prediction of 1% from economists polled by Bloomberg. A decline in October was revised downwards to 1.2%.
BHP and Rio Tinto continued to rally in the US despite the threat to mining activity in the Pilbara and Kimberley from tropical cyclone Christine. Both companies suspended port and rail operations in the region yesterday ahead of the cyclone's arrival overnight. In US trade, BHP put on 0.48% and Rio 1.02%. Spot iron ore for import to China yesterday extended gains fuelled by the cyclone, rising 20 cents to US$134.20 a dry tonne.
Energy stocks were worst of the 10 US industry groups as oil slumped back below US$100 a barrel. Energy producers fell 0.6% as West Texas Intermediate crude for February delivery fell $1.03 or 1% to settle at US$99.29 a barrel. The contract was lately trading at US$99.25.
Gold stocks also took a hit as the metal extended its worst annual loss in at least 30 years. The NYSE Arca Gold Bugs index fell 2.6% as gold for February delivery dropped $10.20 or 0.8% to settle at US$1,203.80 an ounce. The contract was recently trading at US$1,196.70. Gold has fallen roughly 28% since January 1.
Aluminium bucked the downtrend in metals, rising 0.7% to an eight-week high in response to the US housing news. Elsewhere on the London Metal Exchange, copper eased 0.1% and lead, tin, zinc and nickel declined. US copper for March delivery was recently off less than a cent or 0.1% at US$3.38 a pound.
In Europe, the Stoxx Europe 600 Index slipped 0.17% to break a six-session winning streak as Germany's DAX lost 0.39%, France's CAC 0.04% and Britain's FTSE 0.29%.
TRADING THEMES TODAY
COASTING TO THE FINISH LINE: The big moves for the year appear to be over after a second session of treading water in the US. Still, FGE proved yesterday that there's plenty of life in the market if you look in the right places. Declining commodity prices were a drag overnight in the US and may hamper the miners here today. Cyclone Christine has had limited impact on sentiment towards Pilbara resource stocks so far and might yet prove a wildcard.
ECONOMIC NEWS: Monthly private-sector credit figures are due at 11.30am EST. The US wraps up the year with consumer confidence data tonight, Chicago PMI and house price index.
