The share market plumbed a seven-week low this morning as a rebound in resource stocks failed to stem a third day of losses.
At 1pm EST the ASX 200 was 45 points or 0.8% weaker at 5371 and on track for the index's sixth loss in seven sessions. Relief rallies in gold +4.4%, metals & mining +1% and materials +0.4% were outweighed by declines in health -1.7%, telecoms -1.5% and financials -1.1% ahead of tonight's US jobs update, which is expected to clarify the odds that the Federal Reserve will raise its key rate this month.
“There is potential for markets to whipsaw should we see robust US jobs data tonight,” Sharon Zollner, senior economist at ANZ Bank New Zealand, told Bloomberg. “A stronger US labour market isn’t new news for the Fed or its watchers, rather, it is areas such as manufacturing and retail that are currently causing concern, not to mention a generalised lack of inflation. But nonetheless, payrolls data is traditionally a big market mover, so buckle up.”
The mood was brighter in Asia, where China's Shanghai Composite advanced 0.14%, Hong Kong's Hang Seng 0.47% and Japan's Nikkei 0.05%. Dow futures were recently down three points or 0.02%.
Crude oil futures rebounded 43 cents or 1% this morning to US$43.59 a barrel. Gold futures were 40 cents or 0.03% firmer at US$1,317.40 an ounce. The dollar was buying 75.49 US cents.
Trading: another low-key session. Scraped a wage out of AHF. Also took LPI. Congrats to BBXers.
