Slow Monday for Aussie Trading

The weak Australian trading in the market on Monday was affected much of what was happening beyond the region.  

The jobs data in the US that was reported last Friday show that for the third consecutive month, job hiring is still not picking up.  This news caused the 1.5 per cent loss in the US market in the previous week.  

SPI suffered a 1.2 percent loss at the opening of the market and the Australian dollar lost 1 US cent, which is the weakest it has been since January 9, 2012. 

There also have been low demands on construction work as the Australian Industry Group-Housing Industry Association’s performance show that the construction index has fallen to 34.9 which is 1.3 points lower in April. 

Early in the morning, nine of the top 200 companies are the only ones not in the red. 

Another concern that may have affected the weak trading in Australia is the outcome of the French election over the weekend wherein the first socialist president in 17 years was elected, Francois Hollande.  

Austerity measures to alleviate the eurozone debt crisis do not seem to be in the forefront of Hollande’s agenda saying that “growth, employment and prosperity” should come first before austerity.  This didn’t sit well with the Greeks as well. 

Adding to the strain in the local market is the low openings in the regional markets:

• Japan (Nikkei): -2.4%

• Shanghai: -2%

• Hong Kong: -2.4%

• Taiwan: -2.1%

• Singapore: -1.6%

• South Korea: -1.7%

Banks including ANZ, CBA, NAB, and Westpac during the first hour of trading were well ahead of the mining sectors. Major Australian retailers showed a weak start as well:

• Wesfarmers – down 1.73%

• Harvey Norman – down 1.37%

• David Jones – down 2%

• Myer – down 2.48%

• Woolworths – down 0.78%

Tagged Francois Hollande