Australian stocks have opened Wednesday’s session modestly lower, mirroring the move in SPI futures overnight.
But, as we all saw yesterday, where the index starts a session does not always indicate where it will end.
First, the scoreboard as at 10.15am AEST:
- ASX 200 5198.10 , -9.68 , -0.19%
- All Ords 5299.80 , -10.19 , -0.19%
- AUD/USD 0.7464 , 0.0002 , 0.03%
And here’s how the ASX 200’s individual sectors are faring. We’ve thrown in the All Ords gold index for good measure.
- A-REITS -0.67%
- CONSUMER DISCRETIONARY -0.30%
- CONSUMER STAPLES -0.23%
- ENERGY -1.04%
- FINANCIALS 0.03%
- HEALTHCARE 0.14%
- INDUSTRIALS -0.01%
- INFORMATION TECHNOLOGY -0.07%
- MATERIALS -0.83%
- TELECOMMUNICATIONS -0.02%
- UTILITIES -0.16%
- ALL ORDS GOLD INDEX -1.66%
The losses are being led by the energy sector following significant declines in crude oil futures in overnight trade. In early trade Brent crude futures — the global benchmark — sit up 0.3% after a smaller-than-expected build in US crude inventories last week according to data released by the API.
Elsewhere gold producers are also under pressure, losing 1.6%.
Materials, after weakness in iron ore markets on Tuesday, are also off 0.73%.
Financials, the largest component of the ASX 200 by market weight, are fractionally higher, having been the main catalyst behind the weakness in the index on Tuesday. Along with healthcare, these are the only sectors that currently sit in positive territory.
Yield sensitive sectors such as real estate investment trusts and utilities are also nursing small losses.
On that topic, Australian 10-year government bond yields have risen to as high 2.17%, mirroring the move seen in other developed bond markets overnight.
That move is also being replicated in Japanese government bonds, something that Chris Weston, chief market strategist at IG Markets in Melbourne, said would be influential on broader Asian markets today.
The benchmark 10-year JGB yield currently sits at -0.017%.
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