0054 GMT [Dow Jones] Australia's S&P/ASX 200 is down 0.3% at 4119
after a high-volume opening due to the June expiry of SPI 200 futures.
The Nikkei 225 is up 0.5% on Japanese yen strength, even after the
Federal Reserve stopped short of announcing fresh quantitative easing.
But the Australian market is succumbing to disappointment that the Fed
opted merely to extend its "Operation Twist" after lowering economic
growth forecasts. "The Australian share market continues to be driven
by global issues, with Europe, the U.S. and China in focus," says
Patersons investment adviser Peter Morgan. "Risk assets expected the
extension of Operation Twist, but they are perhaps a little
disappointed there wasn't more action from the Fed. Europe's making
very slow progress on the debt crisis, but we do have the E.U.
leaders' summit next week." Resources and financials are weighing on
the market, with Woodside (WPL.AU), Newcrest (NCM.AU) and Fortescue
(FMG.AU) down 0.6%-2.1%, major banks down 0.2%-0.6%, and Macquarie
(MQG.AU) is off 2.1%. "It's just weak," says a senior Credit Suisse
trader. "There's a lack of buyers." Focus now turns to HSBC's flash
China PMI data at 0230 GMT. (david.rogers1@wsj.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
June 20, 2012 20:54 ET (00:54 GMT)
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