Aust stocks pare losses at noon

Local market recovers some ground after barrage of earnings, with US Fed jitters weighing on sentiment.

The Australian stock market pared sharp early falls to sit half a per cent lower at noon as investors digested a barrage of company earnings.

Sentiment took a hit on the lack of clarity provided by the release of US Federal Reserve minutes overnight on the timeline for the paring of quantitative easing. 

At 1205 AEST, the benchmark S&P/ASX200 index fell 0.53% to 5,072.9 points, while the broader All Ordinaries index lost 0.51% to 5,064.2 points.

CMC Markets Stockbroking's Chay Flack said the Federal Reserve minutes indicated board members were comfortable with changes outlined by chair Ben Bernanke to wind up the stimulus easing program sometime next year. 

He said investors' focus would shift to the federal election after earnings came off.

"With earning season at or over the hump it’s likely the market will ease off over the next few weeks as investors take profits," he said.

"However the September election will become more of a focus with the expected change in government being looked at favourable for the market."

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles