The share market pared two days of gains as overnight falls on overseas markets overshadowed strong domestic economic news.
At lunchtime the ASX 200 was 47 points or 0.9% lower at 5287 and on course to erase yesterday's 41-point rally. Gold +1% was the only sector to resist the downtrend. Energy -1.4%, metals & mining -1.2% and industrials -1.2% suffered the biggest declines. Market heavyweight BHP hit its lowest point since July last year amid gloomy prognostications about the outlook for equities.
“The volatility in the global markets is likely to overwhelm risk assets,” Evan Lucas, market strategist at IG, told Bloomberg. “Equities are going to feel the pinch of a market pullback.”
The dollar rallied more than half a cent this morning following unexpectedly strong trade data and building approvals. The trade deficit halved in August to $787 million from $1.4 billion in July. Approvals for new homes increased by 3% in August, three times the growth anticipated by economists. The dollar was lately buying 87.98 US cents.
Japan's Nikkei dived 1.66% this morning following overnight weakness in Europe and the US. Trade on China's Shanghai Composite and Hong Kong's Hang Seng were suspended for public holidays. Emini Dow futures were recently off a point or less than 0.1%.
Crude oil futures edged up five cents this morning to US$90.78 a barrel. Spot gold was $4.40 firmer at US$1,217.90 an ounce.
Gnarly morning. Annoyed at missing the NXR run - exactly the sort of set-up I've been tracking. Watched it for ages without taking a position. MNC was one I did take but it looks like there is still a lot of selling to work through there. LNG has been a great trader but the sellers are winning this session so far. Got a bounce trade out of SYR. Also took MEO - erratic trading there the last few sessions. Watching TTN for a sign the selling is slackening - high risk and intraday only.
