China data weighs on materials sector
The benchmark S&P/ASX 200 Index fell 36.2 points, or 0.7 per cent, to 5130, while the broader All Ordinaries shed 39.8 points, or 0.8 per cent, to 5104.1.
Another round of weak data from China weighed heavily on the materials sector, which dropped 1.6 per cent. The sector is down 15.5 per cent in 2013.
China's final HSBC purchasing managers' index (PMI), a reading of factory-sector growth, eased to 50.4 in April, from 51.6 in March. On Wednesday, the country's official PMI also fell.
The new exports index fell below 50, to 48.4, for the first time this year, its lowest level since October last year. A reading above 50 indicates expansion, while below points to contraction in growth.
Rio Tinto slid 2 per cent to $53.91, while rival BHP lost 1.2 per cent to $31.79. Fortescue Metals slipped 4.3 per cent to $3.33.
"The materials sector has been under a lot of pressure over the last few days on the back of falling commodity prices," said BBY institutional dealer Anson Rosewall. "Base metals were under a lot of pressure in London last night, with nickel and tin entering bear markets and copper falling the most in a year.
While the financial sector eased, attention was still focused on high-yield stocks, with the big four banks and Telstra high on investors' lists.
Westpac fell 0.5 per cent to $33.90 before reporting its first-half earnings results on Friday.
CBA and ANZ both dipped 0.6 per cent to $72.50 and $31.50 respectively, while NAB inched down 0.3 per cent to $33.84.
Department store Myer felt the wrath of social media after chief executive Bernie Brooks said the government's increase to the Medicare levy, to help fund the disability insurance scheme, would hurt Myer profits because the money could have been spent by the public in Myer shops. Calls to boycott Myer stores were enough to scare off investors.
National turnover was 1.52 billion securities worth $3.61 billion. The dollar fell sharply from US103.60¢ to US102.27¢ in late trading.
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The sharemarket finished lower as investors questioned the health of world economies and commodity prices weakened. The S&P/ASX 200 fell 36.2 points (0.7%) to 5,130, while the All Ordinaries declined 39.8 points (0.8%) to 5,104.1.
Weak factory and export data from China weighed heavily on the materials sector, which dropped 1.6% on the day. The sector has been under pressure this year and was down 15.5% in 2013 as falling commodity prices cut demand for raw materials.
China's final HSBC purchasing managers' index (PMI) eased to 50.4 in April from 51.6 in March, and the country's official PMI also fell. The new exports index slipped to 48.4—below 50 for the first time this year and the weakest since October. Readings above 50 indicate expansion and below 50 indicate contraction, so these numbers suggest slower factory growth and weaker export demand, which can pressure commodity prices and mining stocks.
Major miners fell on the day: Rio Tinto slid about 2% to $53.91, BHP lost roughly 1.2% to $31.79, and Fortescue Metals slipped about 4.3% to $3.33. Base metals were under pressure internationally, with nickel and tin entering bear markets and copper falling the most in a year.
The financial sector eased but remained a focus for investors, especially high-yield stocks. Westpac fell 0.5% to $33.90 ahead of its first-half earnings due Friday. CBA and ANZ both dipped about 0.6% to $72.50 and $31.50 respectively, while NAB inched down 0.3% to $33.84.
Department store Myer came under pressure after CEO Bernie Brooks said a government increase to the Medicare levy—intended to help fund a disability insurance scheme—could hurt Myer profits because customers might spend money elsewhere. Social media calls to boycott Myer stores followed and were enough to scare off investors, according to the article.
National turnover was 1.52 billion securities worth $3.61 billion. The Australian dollar fell sharply in late trading, from US103.60¢ to US102.27¢.
The article highlights that weaker Chinese data and falling commodity prices can quickly pressure materials and mining stocks, while bank shares may be influenced by upcoming earnings announcements. It underscores how global economic signs (like PMI and export readings) and social-media-driven events (as with Myer) can move Australian markets and the currency.
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