Stocks dip in wait for US, China data

STOCKS edged slightly lower yesterday - losing ground for a fifth straight session - as investors awaited key economic data and commentary from the US and more figures on China's economic growth.

By InvestSMART · 12 Jul 2012

By InvestSMART ·
12 Jul 2012

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STOCKS edged slightly lower yesterday - losing ground for a fifth straight session - as investors awaited key economic data and commentary from the US and more figures on China's economic growth.

The S&P/ASX 200 Index ended down 1.5 points at 4096.5. The five-day retreat is the longest negative stretch since late November.

Telstra was a standout performer, rising 5?, or 1.3 per cent, to $3.86, its highest close since December 2008. The stock is up about 15 per cent in 2012 compared with just 1 per cent for the benchmark index.

The telco sub-index was the best-performing sector, adding 1.3 per cent, while financials rose 0.4 per cent. Materials fell 0.5 per cent, industrials gave up 1.1 per cent and energy stocks sank 1.2 per cent.

European stocks were lower in early trading last night. The dollar, meanwhile, hovered just below a record high reached early yesterday morning against the euro of 83.43 euro cents. At the close, it was also buying US102.23? (up from US101.86? on Tuesday) and Y81.10 (up from Y80.90).

Spot gold edged lower to $US1575.65 an ounce, and New York oil futures were down $US2.08 at $US83.91 a barrel.

CMC Markets senior trader Tim Waterer said the Australian sharemarket had traded in neutral, after a negative lead from overseas.

Sentiment was largely defensive, he said, as investors contemplated forecasts that quarterly company earnings reports in the US were likely to disappoint.

Investors also feared that European Union leaders might rest on their laurels in implementing measures to stop the eurozone's economic woes worsening.

China's economic health was also of concern after a run of soft economic numbers this week and expectations that Chinese gross domestic product data due for release tomorrow would also point to a slowdown.

On the sharemarket yesterday, global miner BHP Billiton was off 17? at $31.05 and Rio Tinto was 45? weaker at $55.65.

The big banks all firmed, NAB rising 4? to $23.59, ANZ 10? to $22.44, Commonwealth 16? to $53.60 and Westpac 26? to $21.82.

Woodside Petroleum dropped 14? to $30.4 and Santos dipped 3? to $10.52.

Woolworths was 6? higher at $27, and David Jones steady at $2.35.

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Frequently Asked Questions about this Article…

Why did Australian stocks dip for a fifth straight session?

The Australian sharemarket edged lower as investors waited for key US economic data and commentary and upcoming Chinese GDP figures. Negative leads from overseas, worries that US quarterly earnings could disappoint, concerns about European policy progress and softer Chinese economic numbers all contributed to a defensive tone.

How did the S&P/ASX 200 index perform in the latest session?

The S&P/ASX 200 finished slightly lower, down 1.5 points at 4,096.5. That marked a five-day retreat—the longest negative stretch since late November, according to the report.

Which sectors performed best and worst on the day?

The telco sector was the best-performing area, with the telco sub-index up about 1.3%. Financials also rose around 0.4%. By contrast, materials fell roughly 0.5%, industrials gave up about 1.1% and energy stocks sank about 1.2%.

What happened with Telstra and why might everyday investors notice it?

Telstra was a standout, rising to $3.86—its highest close since December 2008. The article notes Telstra is up about 15% in 2012 compared with roughly 1% for the benchmark index, making it notable for investors watching telco performance and relative gains.

How did major miners and energy stocks move?

Global miner BHP Billiton was weaker at $31.05 and Rio Tinto was down at $55.65. Energy names like Woodside Petroleum and Santos also fell, with Woodside down to about $30.40 and Santos near $10.52.

How did Australia’s big banks perform in the session?

The big banks firmed: NAB rose to about $23.59, ANZ to $22.44, Commonwealth Bank to $53.60 and Westpac to $21.82, according to the article’s session close figures.

What were the key moves in currencies and commodities investors should watch?

The Australian dollar hovered just below a recent record against the euro (around 83.43 euro cents) and was buying roughly US$1.0223 and ¥81.10 at the close. Spot gold edged lower to about US$1,575.65 an ounce, and New York oil futures were down to about US$83.91 a barrel (off roughly US$2.08).

What upcoming events should everyday investors monitor after this market session?

Investors should watch imminent US economic data and company earnings reports, the release of Chinese GDP figures, and any European Union policy developments—these were singled out in the article as key drivers of market sentiment and potential volatility.