Thanks Haplo and regulars.
Half-time round-up:
The share market plumbed a seven-month low this morning before paring falls as bargain-hunters picked up select defensive stocks ahead of the end of the quarter.
At lunchtime the ASX 200 was 16 points or 0.3% lower at 5297 but trading well above the morning low of 4260, a level last seen in mid-February. Property trusts +0.8%, telecoms +0.5% and energy +0.3% were best of a handful of sectors to turn positive. The sharpest losses came in gold stocks -1.2%, consumer staples -1% and metals & mining -0.6%. The declines followed more downbeat economic news from China on the weekend, where profits among industrial companies deteriorated last month for the first time in two years.
‘‘It’s yet another figure confirming downward pressure on the Chinese economy which has impacts on Australia,’’ CMC Markets chief market analyst Ric Spooner told Fairfax. ‘‘This has dragged the market down.’’
Hong Kong's benchmark share index slumped to a two-month low following violent clashes over the weekend between police and pro-democracy demonstrators. The Hang Seng tumbled 1.84%.
“It’s going to spook some investors who are worried that this could drag out, affecting the business climate in Hong Kong,” Vasu Menon, vice president of wealth management at Oversea-Chinese Banking in Singapore, told Bloomberg. “It’s happening at a time when the US Federal Reserve is talking about tightening monetary policy, a time when China is slowing down. So now you have a third layer of uncertainty weighing on the Hong Kong stock market and it’s something investors could do without at this stage. It is serious.”
China's Shanghai Composite rallied 0.17% and Japan's Nikkei 0.43%. Dow futures were recently down 36 points or 0.2%.
The dollar continued its decline this morning, falling two-thirds of a cent to 87.06 US cents. Crude oil futures dived 60 cents to US$92.94 a barrel. Spot gold was $1.20 softer at US$1,218.20 an ounce.
Finally, a hint of a bounce on the XJO. Last gasp effort from the fundies to improve their portfolios before ruling off another quarter at COB tomorrow? Hope so - might mean a rally tomorrow. Anyone remember those? Mixed morning at this trading desk. Was too slow to get on board CNX before it took off. Profitable bounce in TIS from 30c. TWE took all morning to come good but eventually offered a reward - the fundies who thought it was worth more than the offer price of $5.20 really had to buy this morning, so it was always a chance. My old favourite FXJ has yet to come good. Can't win 'em all.
