China manufacturing rebound fails to stir local investors
But better-than-expected manufacturing data from China helped the market lift from the session's lows. HSBC's flash purchasing managers index showed Chinese manufacturing hit a four-month high in August.
The benchmark S&P/ASX 200 Index lost 24.3 points, or 0.5 per cent, to 5075.7, after earlier falling as low as 5028, while the broader All Ordinaries Index slid 23.6 points, or 0.5 per cent, to 5066.7.
Falls were led by the materials sector (down 0.8 per cent) and financials (down 0.4 per cent), while consumer discretionary stocks edged up 0.2 per cent.
Local investors also had to digest a flood of earnings, with more than 20 companies reporting.
Amid a mixed bag of results, the standout was Fortescue Metals, IG Markets analyst Chris Weston said. The miner posted a higher-than-expected net profit of $US1.74 billion and surprised its shareholders with a 10¢ fully franked dividend. Fortescue shares rallied on the result, jumping 4.2 per cent to $4.26.
The result did not help lift the other miners, with BHP falling 1 per cent to $35.37 and Rio losing 0.9 per cent to $59.04.
Among other companies reporting, IAG shares fell 2.2 per cent to $5.80, Origin Energy rallied 5.8 per cent to $12.98 and Pacific Brands slumped 7.6 per cent to 79¢.
Australia's biggest goldminer, Newcrest, fell 1 per cent to $12.40, after the metal's price slipped overnight, taking a break from its recent rally.
The big banks ended mixed: CBA and NAB rose 0.2 per cent and 0.6 per cent respectively, while ANZ and Westpac fell 0.8 per cent and 0.9 per cent.
The Chinese manufacturing data also boosted the dollar, which was fetching US89.9¢ in late trade after plunging as low as US89.32¢ in the wake of the Fed minutes.
The currency is still showing a loss of more than 2 per cent since Monday against its US counterpart and is at three-year lows versus the pound.
"The Aussie will stay heavy and I don't see it trading back above US90.50¢. Anywhere near that level, it's going to be sold," said a trader at a European bank in Singapore.
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The benchmark S&P/ASX 200 fell 24.3 points (0.5%) to 5,075.7 after earlier dropping as low as 5,028. Investors were nervous about an imminent end to the US Federal Reserve's stimulus program and were digesting a flood of local earnings, although China’s better-than-expected manufacturing data helped markets recover from the session lows.
HSBC’s flash purchasing managers index showed Chinese manufacturing hit a four-month high in August, which helped lift the market off its lows and also boosted the Australian dollar in late trade. The article notes the China manufacturing surprise provided a positive lift amid broader investor concern about Fed stimulus and local earnings.
Falls were led by the materials sector (down 0.8%) and financials (down 0.4%), while consumer discretionary stocks edged up about 0.2% during the session, according to the article.
Fortescue Metals was the standout: it posted a higher-than-expected net profit of US$1.74 billion and declared a 10¢ fully franked dividend. Fortescue shares rallied 4.2% to $4.26 on the result.
No — despite Fortescue’s strong earnings and dividend, other big miners fell: BHP dropped about 1% to $35.37 and Rio lost 0.9% to $59.04, according to the article.
The big banks finished mixed: CBA rose 0.2%, NAB gained 0.6%, while ANZ fell 0.8% and Westpac declined 0.9% in the session covered by the article.
Other notable moves included IAG shares falling 2.2% to $5.80, Origin Energy rallying 5.8% to $12.98, Pacific Brands slumping 7.6% to 79¢, and Newcrest sliding 1% to $12.40 after the metal’s price eased overnight.
The Australian dollar strengthened to about US89.9¢ in late trade after plunging as low as US89.32¢ following the Fed minutes. It was still down more than 2% since Monday and at three-year lows versus the pound. A trader in Singapore said the Aussie would stay heavy and would likely be sold if it approached US90.50¢.
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