Amongst the leadership squabbles in Australia, equity markets were subdued throughout Asia, with the S&P/ASX 200 Index again finishing flat for the day, losing just 7 points or 0.1% to 4293 points, remaining below 4300 points and going nowhere as we move into the backend of the earnings season:
Before we go on, as I missed Market Morning, here’s what happened last night in review:
The UK FTSE finished down 11 points or 0.2% to 5916, almost at the psychologically powerful 6000 point level, which also happens to be the nexus of its weekly downtrend from the pre-correction high in April 2011. The German DAX was off almost 1% to 6843, wanting to extend its extreme gains and get past 7000 points, and following the FTSE (or vice versa) in lockstep.
On the other side of the Atlantic, US equity markets were all down slightly, with the S&P500 losing 5 points to down 0.3% at 1357, the narrower Dow Jones Industrial Average down 27 points, still resisting going over the 13000 point level, whilst the tech-heavy NASDAQ Composite was down 0.5% to be at 2933 points. US bond yields were relatively steady, with the 10 year T-Note still tracking sideways, and in a broad bullish trend overall:
So back to Asia – with Japan’s Nikkei 225 up slightly to 9570, still above resistance at 9000 points and building on its breakout whilst the volatile Hang Seng is currently down nearly 1% to 21337 points with the Shanghai Composite slightly down, just above 2400 points and nestling just above its long term downtrend channel for now.
The AUD remained resilient through the Grand Space Opera unfolding, remaining at around 1.063 against the US Dollar with WTI crude slipping slightly to be just below $106USD per barrel.
Gold had a ripper last night, bid up furiously on the NY Globex open to get above $1780USD an ounce before deflating slightly coming into the Asian session, where it has tread sideways all day, currently at $1772USD an ounce. In AUD terms the shiny metal is currently at $1665AUD an ounce, steady for the day and lagging its American cousin, kind of.
Movers and Shakers
A mixed board again, with energy sector gaining the most, again, up 1.8%, mainly due to Woodside, again. Hmm. The biggest loser was Telecomms (i.e Telstra, continuing to be sold off after going ex-dividend earlier this week, with support at $3.20 below)
Checking out the ASX8 (the top four banks and miners who collectively provided more than 90% of profit growth last year), ANZ slipped 0.3% to be under resistance above $22 per share on the daily charts. It needs to close above this level at the end of the week to get to the next target at circa $25 per share, in my opinion.
The big brother of banks, the Commonwealth (CBA) finished flat for the day, as National Australia Bank (NAB) was down 1% and still proving to be the worst price performer, continuing to go sideways whilst Westpac (WBC) has slipped 0.5%, losing yesterday’s gains also still technically in a sideways funk like NAB.
Quickly checking out Macquarie (MQG), the Millionaire Factory was off by just under 2%, the silver doughnut trying to build o its recent breakout and remaining just above its long term moving average.
To the holes, where BHP Billiton (BHP) finished down 0.5% for the day and going sideways in the medium term, stuck in a trading range with a potential bottom at $34 a share. Without a big rise in the Big Australian don’t count on the broader market moving anytime yet. Stuck record, I know, but it’s working so far.
Its “twin” Rio Tinto (RIO), was down nearly 1% and also remains in a trading range after trying to break free of its bearish downward bias, with resistance at $70 per share and support at $59 a share.
Gold miner Newcrest Mining (NCM) was up 0.7% on very strong intraday buying, probably in response to yesterday’s ebullient move by gold on the spot markets.
To finish out the ASX8, Woodside Petroleum (WPL) was up more than 3% looking very bubblish on the daily charts, breaking out above $37 a share like I warned yesterday:
The overnight futures for the ASX200 are flat alongside other equity futures. Tonight’s dataflow includes US jobless claims and the KC Fed Manufacturing Index in what is a data-poor week for markets to react to.