MARKET TALK: S&P/ASX 200 Down 0.6% As US Futures Remain Weak

7th Jul 2010 06:21

0521 GMT [Dow Jones] S&P/ASX 200 down 0.6% at 4249.9 after hitting fresh intraday low of 4234.3 in afternoon trading, as U.S. stock index futures remain down 0.3% and Asian stock markets are mostly negative. Banks have fallen back to earth, with falls of 1.0%-1.9%, after excessive gains of about 3.0% yesterday. Resources holding some of their gains, although significantly undershooting offshore gains. BHP (BHP.AU) up 0.5% at A$37.32 vs 5.5% rise in London. Rio (RIO.AU) up 1.0% vs 5.9% rise in London. U.S. growth proxy, News Corp. (NWS.AU), which owns this news wire, is down 1.9%, hitting fresh 7-month low. U.S. dollar strength is another sign of risk aversion today, with AUD/USD down 0.4% and EUR/USD down 0.3% from the NY close. "I can't say it's a huge surprise," says senior trader at major broker. "Banks have given up some gains after getting a bit carried away yesterday. "All the recent U.S. data have been disappointing. Resources got excited about the China infrastructure spending plans yesterday but it was really just a reiteration of previously announced plans." Doesn't expect much movement ahead of U.S. earnings period. "The concern maybe now is whether the PE forecasts are achievable," he says. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 07, 2010 01:21 ET (05:21 GMT)