With the US theatrics over debt ceilings continue into the opening of the Asian markets this morning, the S&P/ASX 200 slumped almost 1% and is now 42 points or 0.93% lower at 4560 points.
Other Asian markets are experiencing similar losses, with the Nikkei 225 down 0.6% to 10068 points, and the Hang Seng also down 0.6% at 22309 points.
Other risk assets are mixed, with the AUD maintaining above 1.08 against the USD, whilst gold shot up this morning to a new record at $1624, now down to $1613 USD an ounce. WTI crude is down slightly at $98.92 USD per barrel.
Movers and Shakers
It’s mainly red across the board, the biggest gains in the energy and IT sectors. The banks are all down 1% or more, with Macquarie (MQG) down over 2%
The resource twins BHP and RIO are having a similar bad day, down 0.6%, whilst my preferred offspring – Cochlear (COH) and CSL – are up 0.4% and down 1.1% respectively.
The big winners amongst ASX200 stocks are Lynas (LYC) up 4%, Nexus (NXS) up 3% and Paperlinx (PPX) up 3%.
The biggest losers include Platinum Australia (PLA) down 13% on bad results, AWE Energy (AWE) down 8.8% and Energy World (EWC) down 4%.
Daily Chart
The daily chart shows that today’s move has bounced off the previous resistance around 4600 points, taking back most of last week’s gains. This weak rally will not equate into a bullish uptrend until the previous high of 4650 points is taken out. A bull market rally will not get underway until we are clear of the 4700 point level.
