A very mixed day on Asian markets, and after the RBA stunned the economic press (including us here at MacroBusiness!) with a hold on interest rates, the S&P/ASX 200 Index finished down over 0.5% or 21 points to 4274 points, after rising above the crucial 4300 point level earlier in the session.
Japan’s Nikkei 225 is flat, currently down a few points at 8920 points, whilst the volatile Hang Seng is also flat, up 4 points to 20714. Both are basically reacting to the very sharp selloff on the Shanghai Composite currently down more than 2% or 52 points to 2279 points, retracing from the upper range of its dominant downtrend channel.
The AUD shot up on the RBA non-decision, hitting 1.08 against the USD, currently at 1.079 on the spot market, whilst WTI crude was flat again. Gold too had a quiet day during the Asian session, still at $1725USD an ounce.
Movers and Shakers
Not much to party about on the rate hold according to the sectors, with only telecomms (i.e Telstra) putting on meaningful gains, alongside utility stocks, up half a percent. The biggest losers were materials and financials (Holes and Houses), as we shall see in a moment.
Checking out the ASX8 (the top four banks and miners who collectively provided more than 90% of profit growth last year), it wasn’t quite a bath of blood but on the back of NAB’s “positive” result it reinforced the notion, somewhat. According to consensus valuations, all the banks should be 20% or more higher.
ANZ was up slightly, going nowhere still whilst the big brother of banks, the Commonwealth (CBA) peaked above $51 a share, but retraced below, losing 0.6% on the day.
National Australia Bank (NAB) finally finished almost 4% down, and is increasingly looking bearish on the charts, in the face of a 7% rise in profits… Westpac (WBC) didn’t escape either, down 0.5%, still below its 200 day moving average and also remaining in a neutral stance.
Quickly checking out Macquarie (MQG), the Millionaire Factory remains above its crucial $25 per share resistance level, only losing 0.7% after downgrading its profit expectations by 25% – speculators (I almost wrote investors…) are holding out for the ill-considered $800 million share buyback. Maybe they can get a better return somewhere else?
To the holes, where BHP Billiton (BHP) moved the index, falling almost 1% whilst its “twin” Rio Tinto (RIO), retraced even further, down 1.8%, still just above its 200 day moving average, and on the weekly charts, still in a breakout position:
Gold miner Newcrest Mining (NCM) was down 1%, whilst Fortescue (FMG) was down nearly 2%, also hovering around its long term moving average after recently breaking out above it $5 per share psychological barrier.
To finish out the ASX8, Woodside Petroleum (WPL) finished exactly flat, its short term uptrend completely morphing to sideways with short term resistance zone around the $34 mark penetrated but not followed through with any discernible strength:
The overnight futures for the ASX200 are up slightly to around 4280 while other equity futures are mixed and subdued going into the European session with little in way of data releases to spook markets, except that whole Greek thing.