The Australian market reversed early strong gains to close flat after a confidence-shaking sharp fall in Chinese stocks.
Here’s the scoreboard:
- S&P ASX 200: 5,309.10 +9.86 (+0.19%)
- All Ordinaries: 5,289.00 +10.22 (+0.19%)
- AUD/USD: 0.8212 -0.0015 (-0.19%)
The ASX was up more than 1.3% in early trade led by energy stocks and miners.
But the local market went into reverse when Shanghai stocks fell more than 6% after China’s regulator suspended three major brokers for three months following alleged rule violations on margin lending accounts.
The top stories on Monday:
1. Macquarie Banks expects better profits. The Macquarie Group says improved trading conditions and a lower Australian dollar will mean improved profits of between 10% and 20% for the full year. Its shares closed at $58.25, up more than 5%.
2. Bottom feeding. Australian online foreign exchange broker Pepperstone has its competitors in sight as it goes bargain hunting in the carnage left by the Swiss central bank’s withdrawal from pegging against the Euro.
3. Shares in OzForex dropped 10% to $2.43 after Westpac announced it was withdrawing from providing banking services to the online foreign exchange group.
4. Resources look good. Morgan Stanley came out with a report on the commodity cycle, saying it’s bullish on Australian miners.
Here’s the chart.