Wherefore art thou bulls? The S&P/ASX 200 Index started off shakily and then slumped as Chinese trade balance numbers and the “outrageous” espresso sized out of cycle hike by ANZ set risk hearts a flutter. The market fell almost 1% or 37 points to 4245 points:
This chart does not look good – the market just refuses to break free and go over 4300 points to follow its outperforming US (and European) brethren. “More rate cuts please Mr Stevens” must be the prayer on the lips of long-only investors at this stage.
Other Asian markets felt the heat too, with Japan’s Nikkei 225 down 0.6% to 8947, , with the volatile Hang Seng down over 1% to 20764, whilst the Shanghai Composite is currently flat at 2350 points.
The AUD is making a move this afternoon, dipping below 1.07 against the USD, but currently just inching ahead at 1.0705 on the spot market, whilst WTI crude slipped, staying above $99.50USD per barrel. Gold had a losing day during the Asian session down $7 or 0.4% to $1733USD an ounce, whilst in AUD terms the shiny metal is currently at $1615AUD an ounce, up $5 for the day.
Movers and Shakers
Not quite a bath of blood, as the IT and Telecom sectors (i.e Telstra) were up, but its mainly red across the board, with materials stocks leading the way, – i.e BHP and twin RIO.
Checking out the ASX8 (the top four banks and miners who collectively provided more than 90% of profit growth last year), it was a slightly negative day for the banks, with ANZ down almost 1%, just above its 200 day moving average, whilst the big brother of banks, the Commonwealth (CBA) lost over 1% and has now flicked below its once resistance level of $50 per share (remember my warning in late January?)
National Australia Bank (NAB) was the best performing, only down 0.3%, dicing with support at $23 per share whilst Westpac (WBC) also lost over 1%, below its 200 day moving average and also remaining in a neutral stance.
But what about the yield!! Appears the earnings vice is getting screwed alongside investors.
Quickly checking out Macquarie (MQG), the Millionaire Factory now above $26 per share resistance level, up 1% building on its breakout.
To the holes, where BHP Billiton (BHP) lead the market all the way down, losing another 2% on bad Chinese data, looking like closing a bull trap on the charts:
Its “twin” Rio Tinto (RIO), was also over 2%, falling below not only its 200 day moving average, but resistance at $70 a share and its short term trendline:
Gold miner Newcrest Mining (NCM) was up 1.7%, after reporting a 50% rise in profits, and whilst going slightly sideways in the very short term is still on trend from its New Year low.
To finish out the ASX8, Woodside Petroleum (WPL) finished down 0.5% but still grinding away a short term uptrend on the charts (although dominantly bearish).
The overnight futures for the ASX200 are up 3 points to around 4250 while other equity futures have slipped, with the US futures down 0.5% alongside Europe going into the European session with the usual US weekly data releases to spook markets, alongside Greek machinations.