Australian Stock Market Report – Midday June 13, 2014
By Steven Daghlian, CommSec Market Analyst | June 13, 2014 1:39 PM EST
The Australian sharemarket is losing ground for the third straight day and is at a two-month low due to a renewed focus on Iraq. President Obama hasn't ruled out the possibility of military action in the troubled nation. As expected sharemarkets and commodities have been pushed lower by the uncertainty. Looking ahead, plenty of Chinese data in the dying stages of the session will be in focus at 3.30pm (AEST) this afternoon.
Foreign market participants view the domestic stock market as risky and its bond market is seen as underdeveloped compared to the West (Photo: Reuters)
The All Ordinaries Index (XAO) is down 0.8 per cent and is trading below the 5400pt mark for the first time in three weeks.
The energy sector is the lone improver today, helped by a surging oil price overnight. Crude oil jumped by more than 2 per cent, due to supply concerns which has pushed the energy sector 0.9 per cent higher. All other sectors are substantially softer.
The miners are down 1.6 per cent, with weaker commodity prices resulting in the industry's worst week in three months. BHP Billiton (BHP) is down 1.2 per cent, Rio Tinto (RIO) is down 2.5 per cent and Fortescue Metals (FMG) is 4.7 per cent lower. Smaller producers such as Atlas Iron (AGO) and Gindalbie Metals (GBG) are both trading around 5.5 year lows.
The Australian dollar remains above US94c, which isn't ideal for the country's exporters. A mixture of softer commodity prices and a firmer Australian dollar is working against the miners in particular. BHP is at a three-month low, RIO is at an 11-month low and FMG is at its worst levels in 10-months.
Australia's big four banks are all substantially lower, with Westpac (WBC) the worst as it slides by 1.1 per cent. The majors are wiping out 10.7pts from the All Ordinaries Index.
At lunch, 947.8 million shares have been traded worth $2.66 billion. 297 stocks are higher, 498 are in the red and 334 are unchanged.
Looking ahead, three economic reports in China will be important this afternoon. Data on retail spending, production and investment will all be issued. Further abroad, Europe's latest monthly trade balance at 7pm (AEST) and in the US, business inflation and consumer confidence will be highlights.
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily
Most Popular Slideshows
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
- NFL Thursday Recap - Denver Broncos 35, San Diego Chargers 21: Peyton Manning Has 3 TDs In Easy Win [PHOTOS]
- 2014 MLB World Series Game 3: Kansas City Royals 3, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- Verizon Motorola Droid Turbo Leaked Live Images Surfaces, Scheduled To Get Unveiled On Oct 28
- Update HTC One M7 with LG G2 with Android 4.4.2 as Sprint OTA: Fixes and Installation
- U.S. Targets Buyers of ISIS Oil, Threatens Sanctions
- ISIS Syria Airstrike Bombing Has Killed 550 People, Civilians Included
- Russia Shifts Blame On US For Ukraine Crisis, Putin Accuses West of 'Remaking World'
- Russia Blocking OSCE Monitoring Of Its Border With Ukraine