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Midday markets: Australian shares slip as investors eye safe havens

Friday, 22 Jul 2016 10:14:19 | Thuy Ong

Australian stocks have slipped, but gold miners are climbing higher. (AAP: Dean Lewins)

Australia shares have slipped in midday trade after Wall Street took a breather from a record run on some disappointing profit results.

Markets at 11:58am (AEST)

  • ASX 200 -0.2 pc to 5,504, All Ordinaries -0.2 pc to 5,580
  • Major gains: Regis Resrouces +8.5 pc to $3.84, Saracen +6.5 pc to $1.63, Independence Group +6.1 pc to $4.16
  • Major losses: Asaleo Care -29pc to $1.52, Coca-Cola Amatil -3.3 pc to $8.84, Village Roadshow -3 pc to $5.34
  • Regional markets: Nikkei -0.8 pc to 16,674, Hang Seng -0.4 pc to 21,924, Shanghai Composite -0.2 pc to 3,033
  • AUD: 74.8 US cents, 56.5 British pence, 79.1 Japanese yen, 67.8 euro cents and $NZ1.071

Major banks were the biggest drag on the market, with ANZ Bank falling 0.7 per cent, while National Australia Bank lost 0.8 per cent.

Oil and gas companies also took a hit, as oil prices posted big falls in the previous session and as fears of a glut remain.

Oil Search tumbled 2.1 per cent to $7.26 and Woodside Petroleum dropped 1.8 per cent.

Oil Search yesterday said it would not revise its takeover offer for InterOil after conglomerate ExxonMobil trumped its bid.

Despite the fall, Australian shares are still hovering around 11-month highs.

Gold miners helped to stem further losses as investors sought the safe haven metal, which climbed above a three-week low after the European Central Bank hinted at future stimulus.

Regis Resources soared 8.2 per cent, and Newcrest Mining jumped 3.8 per cent.

The Australian dollar meanwhile has fallen to 74.8 US cents, with traders pricing in a near-term range of between 74.5 to 75.25 US cents.

"With a near 60 per cent probability priced in for an August Reserve Bank of Australia rate cut, there has been little appetite to chase Aussie moves lower," said Stephen Ines, senior currency trader at OANDA Australia and Asia Pacific.

"The Aussie dollar bears will still focus on the US economy, which continues to show flickering signs of life in the second half of 2016."

Investors are mostly staying on the sidelines ahead of key inflation data due next week, which will give clues on further rate cuts by the Reserve Bank.

AustraliaPlus


 

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