The share market's three-session winning run is under threat following declines in resource stocks and a downbeat outlook for the Australian economy from Goldman Sachs.
At lunchtime the ASX 200 was 14 points or 0.3% weaker at 5343 as gains in telecoms +0.4%, financials +0.2% and I.T. +0.1% were swamped by falls in gold stocks -3.3%, metals & mining -1.4% and industrials -0.7%.
Describing Australia as the "odd one out of the developed markets group", Goldman Sachs predicted economic growth of just 2% next year as mining investment declines.
"Relative to the acceleration forecast in the global economy, in Australia we expect economic growth to decelerate in 2014, anticipate further easing required by the RBA, forecast additional fiscal drag and see a corporate sector set on a path of investment restraint," Goldman told Fairfax.
Asian markets showed little change following a flat close on Wall Street overnight. China's Shanghai Composite edged up 0.12%, Hong Kong's Hang Seng dipped 0.02% and Japan's Nikkei lost 0.2%. Dow futures were recently up four points or less than 0.1%.
Crude oil futures slipped 20 cents this morning to US$93.48 a barrel. Spot gold was at US$1,242.20 an ounce. The dollar was buying 91.11 US cents.
The mild but nasty downtrend on the XJO remains intact, with the index struggling to break convincingly through the 5370 level these last few days. Volume picked up yesterday, but I can't say it was noticeable. Been a busy but mixed session here once the software issues were sorted. The phrase "manipulated" is overused, but PRR offered plenty of fun this morning - got a couple of pips out of it. DCG offered a relatively safe pullback entry. IVC looks marginally overdone but has not really bounced yet. Dud of the morning has been KCN - share price seemed to have outpaced the decline in gold but no sign of buying yet. PS A CommSec rep this morning said they would have an updated Iress out any day, possibly overnight. Oh dear - rarely goes smoothly.
