Asian markets snapped the risk-on New Years rally from overseas markets with almost all exchanges in the red this afternoon, the S&P/ASX 200 Index closing down 1.1% or 45 points to finish at 4142 points. For the record, the first 3 trading sessions of the year have been : +1%, +2% and -1% – viva la volatility!
In after hours trading, the SPI futures have risen slightly to be at around 4150 points, although the leads from the European and US futures are weak.
Japan’s Nikkei 225 closed down 66 points or 0.7% today, the volatile Hang Seng was up 0.4% to 18808 points and the Shanghai Composite continues to stay in the red for 2012d, currently trading down 3 points to 2166.
The AUD has stayed above 1.03, slipping a few pips and currently trading at 1.0327 against the USD, whilst WTI crude also gained slightly, now at $103.36 USD a barrel.
Gold is looking a bit stronger now, staying above $1600USD an ounce, up $9 to $1622USD an ounce, right on its resistance and 200 day moving average level:
In Australian dollars, the shiny metal is up $10 to $1568 AUD an ounce.
Movers and Shakers
All sectors finished in the red – except property which was flat. The worst performers were energy, IT and telecomms stocks.
The banks gave back most of yesterday’s gains, continuning their mainly sideways movements, with ANZ down 1.3%, Commonwealth (CBA) down 0.7% and again refusing to go above strong resistance at $50 per share, National Australia Bank (NAB) dropped almost 2% and Westpac (WBC) was down nearly 1%, still above support at $20 per share.
Macquarie (MQG) finished exactly flat for the day, whilst healthcare favourite Cochlear (COH) slipped again down nearly 1%, its “twin” CSL also not moving much, down 0.6% just below $32 per share.
Telstra (TLS), as I warned yesterday was getting set up for a blowoff in my opinion, accelerating a little too fast, and fell a little over 1% on slightly less volume. The run is definitely not over just yet, but caution prevails.
To the resources, where the fun of yesterday was quickly forgotten, yet the falls were light: BHP Billiton (BHP) was down 1%, just below $36 a share, its “twin” Rio Tinto (RIO) only down 0.5% still below its short term trendline, whilst gold miner Newcrest Mining (NCM) fell almost 2% still at depressed levels seeing no sign of life.
Fortescue (FMG) retained its reputation for volatility, and fell over 2% and to finish out the ASX8, Woodside Petroleum (WPL) was down – again, and like Newcrest remains at depressed levels just above $30 per share.
Finishing up with the defensive stocks Wesfarmers (WES) and Woolworths (WOW) both followed the broader market, the former dropping 0.7% and the latter down nearly 1%, but remaining in a medium term uptrend.
Read “Market Morning” published at approx. 830am AEDST for an overview of overnight market action and for leads for the Asian session. There’s a French debt auction tonight and European stocks futures are hesitant, with US futures also slipping slightly.