Surprisingly, our market ended up ignoring the goodish Chinese economic data and last Tuesday’s rate cut from the Reserve Bank and finished the week lower.
And that’s the way the market looks like starting this week with the share price index flat at the close of trading on Saturday morning, our time.
For the week, the ASX 200 Index fell 61.6 points, or 1.2%, to 5055.2 points at the close on Friday, while the All Ordinaries fell 59.9 points, or 1.2%, to 5038.8.
S&P/ASX 200 5D – Local Market To Start Flat After A Surprise Fall Last Week
That fall can be attributed to the silly, muddle-headed 93 point fall last Monday that came out of the blue and didn’t really have a driver, except investors didn’t like the news from China, worried about the local economy and the US Fed – all of which proved completely groundless.
So far there have been no surprises in the early June 30 reports – in fact a few have surprised on the upside, including Downer EDI and listed investment companies such as Australian Foundation and Argo which turned in better than expected results.
There are more than 40 major companies reporting this week – the Commonwealth Bank is the one to watch, followed by JB Hi Fi, Stockland, Westfield and Wesfarmers. Those four will tell us how the key sectors on banking, retailing and property are travelling.
Telstra’s hinting of a possible dividend rise saw its shares edge up 0.6% at $5.08 – but they did reach $5.13 on Thursday afternoon.
Mining shares did well because of the better news out of China and the lack of any nasties in the Rio Tinto half year numbers.
Rio rose 1.1% for the week and BHP Billion half a per cent.
The banks all fell with the CBA down 1.2%, the ANZ, 2%, Westpac nearly 2% and the NAB was down 1.6%.
Cochlear produced a slightly better than expected report and news on new products, but that wasn’t enough and the shares lost 1.4%, while CGS shed 2%.
In the US the Dow dropped 72.81 points on Friday to at 15,425.51 and down 1.5% for the week.
The Standard & Poor’s 500 Index dropped 6.06 points to 1,691.42 and was off 1.1% last week, while the Nasdaq lost 0.8% after a 9 point fall Friday to 3660.11.
In Europe, the rebound continues with the the Stoxx Europe 600 Index up 0.6% last week. It is up 11% since June 24’s 2013 low. It had fallen 11% from May 22 (when Fed chairman Ben Bernanke triggered the sell-off with comments about the timing of the end of the easing spending program).
Comex New York gold futures prices rose just $US1.70 for the week to end at $US1,312.20 for the December contract. Gold is still down 22% for the year so far.
New York oil futures (for West Texas Intermediate oil) rose $US2.57, or 2.5%, to close at $US105.97 a barrel in New York, but that left it nearly 1% lower on the week.
Asian shares were mixed with Japan the one to watch as the yen firms, shares come under pressure and the gains of the past few months are chewed up.
The Japanese market fell a nasty 4% last week. if that continues for the next few weeks, it will be a concern.
