The S&P/ASX 200 slipped on the open, down over 30 points or over 0.6% before this afternoon’s rate decision by the RBA. It is now at 4541 points and rising as a result.
Asian markets are mixed with Japanese markets rallying, with the Nikkei up over 0.5%, but the Hang Seng dropping 0.7% and Singapore down 0.21%.
Other risk assets are mixed, with the AUD at 1.0744 against the USD, gold steady at $1545 USD an ounce. WTI crude has fallen below $100, at $98.46 USD per barrel.
Movers and Shakers
The banks are generally down, CBA down 0.8% and NAB 0.7%, with ANZ and WBC steady or slightly down. The major resource stocks continue to push the index down, with BHP down 0.7% and RIO falling half a percent.
In other ASX200 stocks, Emeco Holdings (EHL) is up 3% whilst Macmahon (MAH) is up 2.7% and Telstra staying above $3 at $3.07, up 1.3%
ASX200 at critical support level
The market is well within a falling wedge/trend channel pattern and is now at the Japanese earthquake lows just above 4500 points. The subsequent move from the RBA rates decision in the next few days will be critical to indicate if the bears or bulls are in control. A probable impulse rally will eventuate if the level is maintained, but likely to be extremely weak.
The Dow Global Index has fallen below the support level at 260 points, and has formed a head and shoulders pattern. A fall below the neckline (at approx. 255 points) would indicate a new change in direction for global markets.