The S&P/ASX 200 Index closed down 14 points or 0.34% lower to 4163 points today after bouncing off support at 4150 points, remaining in a tight trading range.
In after hours trading, index futures are steady, with Euro and US markets pointing to lower opens between 0.5 and 1% down.
Asian markets had a slightly worse day, with Japan’s Nikkei 225 down 0.31% to 8349 points, the Hang Seng losing almost 2% to 18142 points and the Shanghai Composite currently down 0.75% to 2398 points heading back to its June 2010 low.
In other risk assets, the AUD remains below parity against the USD and is currently at 99.69 cents, whilst WTI crude slipped and also remains below resistance at $100 USD barrel, now at $97.35 USD a barrel.
Gold slipped again, falling a quarter of a percent during the Asian session and is currently at $1720 USD an ounce, bouncing off its short term support level around $1715 USD an ounce, with much firmer support at $1600 per ounce.
In Australian dollars, gold is currently trading at $1725 AUD an ounce.
Movers and Shakers
An mixed day on the board of the ASX, with the materials and consumer sectors sold off nearly 1%, whilst health care and telecomms (i.e Telstra) sectors putting on half and 1 per cent respectively.
All the banks except Westpac were sold off, with ANZ down 1.5%, Commonwealth (CBA) 0.4% and dicing with short term support (just like the ASX200) just above $47.50 per share:
National Australia Bank (NAB) was down over 1% to $23.20 after failing support at $24 on Friday (and paying a dividend more than a week ago) whilst Westpac (WBC) defied the trend and put a quarter of a percent.
Macquarie (MQG) also helped the financials out putting on 0.6%, having announced future acquisistions in infrastructure assets that are to become available (translated: fire sale) due to EU privatizations.
Healthcare leader Cochlear (COH) rebounded by nearly 2% but still remains at depressed levels post-recall event. Its “twin” CSL resumed its rebound uptrend putting on 0.6% but is struggling to get past $31 a share whilst Telstra (TLS) put on nearly 1% as investors convert their sentiment from “income” to “income plus chance of capital gain”:
BHP Billiton (BHP) dropped 0.6% whilst “twin” Rio Tinto (RIO) lost nearly 2% as it heads back to its pre-QE2 price just above $60 per share.
Meanwhile gold miner Newcrest Mining (NCM) lost 1.7% after going ex-dividend today. Lovely yield by the way – 0.9% and trading at 21.5 times earnings….and analysts say all stocks are cheap?
Fortescue (FMG) had another quiet day, only putting on 1% as it struggles to complete an ascending triangle pattern. A breakout above $5.10 is bullish short-term, but FMG is suffering from the collapse in iron ore prices:
Rounding out the ASX8, Woodside Petroleum (WPL) also put on 1%, slowing recovering like other energy stocks, still down some 27% from the April highs.
The Charts
Note I will now be incorporating charts and selected analysis within the post instead of at the end. From time to time, usually based on an entry event or other catalyst, I will also cover a specific stock (usually not an ASX8).