The S&P/ASX 200 Index closed down 30 points or 0.73% lower to 4133 points today after falling through the significant support level at 4150 points. The local bourse followed the overnight markets, if not in magnitude, then certainly in direction, as the S&P500 lost nearly 2% whilst the UK FTSE and German DAX each fell around 3%, also breaking through support levels:
In after hours trading, the Australian futures are down around 10 points, whilst the Euro markets have opened slightly higher, the US futures are pointing to steady opens.
Asian markets had a slightly better day, with Japan’s Nikkei 225 down 0.4% to 8314 points, the Hang Seng actually up slightly, to 18251 points and the Shanghai Composite only losing one point to 2413 points.
In other risk assets, the AUD remains below parity against the USD and is currently at 98.56 cents, whilst WTI crude gained a little, now at $97.45 USD a barrel.
Gold climbed during the Asian session after a heavy sell off overnight saw the precious metal falling below $1700 USD an ounce, currently at $1690 per ounce as the London session opens.
In Australian dollars, gold is currently trading at $1713 AUD an ounce.
Movers and Shakers
An red day on the board of the ASX, with only the utility sector up (barely) whilst industrials and consumer stocks were sold off, the former down 1.5%.
All the banks were sold off, with ANZ down 1%, Commonwealth (CBA) faring well only losing 0.3% and now just below short term support (just like the ASX200), although intraday buying almost took it back above:
National Australia Bank (NAB) was down 0.3% to $23.20 after failing support at $24 on Friday (and paying a dividend more than a week ago) whilst Westpac (WBC) lost nearly 0.75%
Macquarie (MQG) fell 2% as it keeps struggling to get out of its bear market, with the weekly price hovering around the GFC adjusted low:
Healthcare leader Cochlear (COH) fell further than the market, losing 1.5% and remains at depressed levels post its recall event. Its “twin” CSL was the exception to the broader market and put on nearly a half of percent, however it appears stalled at just over $31 a share as it meets resistance at its long term moving average:
Telstra (TLS) fell with the market, but remains in a primary uptrend as investors continue to convert their sentiment from “income” to “income plus chance of capital gain”:
To the resources, and BHP Billiton (BHP) dropped 0.8% whilst “twin” Rio Tinto (RIO) lost over 2% as it absorbs the dilution of core holding uranium miner Energy Resources Australia (ERA) on a capital raising.
Meanwhile gold miner Newcrest Mining (NCM) lost 0.57% after gold fell overnight, Fortescue (FMG) finished exactly steady as it struggles to breakout of an ascending triangle pattern. A breakout above $5.10 is bullish short-term, but FMG is suffering from the collapse in iron ore prices and general volatility.
Rounding out the ASX8, Woodside Petroleum (WPL) lost just over 0.5%, as crude prices retreat slightly, its still down some 27% from the April highs.