MARKET TALK: S&P/ASX 200 Down 1.5% After Offshore Dive

19th Jul 2010 01:51

0051 GMT [Dow Jones] S&P/ASX 200 down 1.5% at 4357.0, hits 5-day low of 4353.4 after Wall Street dived on weak U.S. consumer confidence and disappointing revenue from BofA, Citi and GE. Index looks weak after last week's rejection from downtrend line and subsequent break of 50-day and 20-day moving averages near 4422 and 4374, according to Dow Jones Newswires technical analysis. Now testing 4357 (38.2% retracement of 4182-4465 rise) ahead of 4324 (50% retracement). Trading remains very quiet, despite the end of New South Wales state school holidays, as Tokyo is out today and investors await Australian earnings period. But traders are nervous after IMF/EU pulled out of loan talks with Hungary. Perception turning back to "glass half empty" ahead of key U.S. economic data and corporate earnings this week. "Funds aren't in a rush to buy, amid uncertainty over U.S. economic data and corporate revenues," says BBY Senior Institutional Trader Peter Copeland. "You've also got blackout period before reporting season and continuing political uncertainty before the Aug. 21 (Australian) election." In resources, BHP (BHP.AU) down 1.2%, Rio (RIO.AU) down 1.1%. Major banks down around 1.8%, Macquarie (MQG.AU) down 3.0%. Aquarius Platinum (AQP.AU) down 24% after South Africa tightened mine safety standards. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 18, 2010 20:51 ET (00:51 GMT)