MARKET COMMENT: S&P/ASX 200 Poised to Fall As US Data Disappoint
04 April 2013 - 10:29AM
Dow Jones News
2259 GMT [Dow Jones] Australia's S&P/ASX 200 is poised to
extend Wednesday's 0.6% fall, with IG strategist Evan Lucas tipping
a 0.8% opening decline to 4917, after disappointing U.S. economic
data weighed on offshore equities and commodity prices. ADP said
U.S. private sector jobs growth for March fell to 158,000 vs the
192,000 expected by the market, suggesting Friday's U.S. non-farm
payrolls report will also disappoint. ISM's U.S. services sector
PMI fell to 54.4 in March from 56 in February. Combined with
increasing tensions on the Korean Peninsula, weak economic data saw
the S&P 500 fall 1.1%, with the financials, materials and
energy sectors leading declines. BHP's (BHP.AU) ADRs fell 1.2% to
A$31.84, with spot iron ore down 0.4%, LME copper down 1.0% and
Nymex crude down 2.8% (high inventories weighed on oil). With spot
gold down 1.1% to US$1,557.45, Newcrest (NCM.AU) should remain
weak. Lower metal price forecasts from UBS and Credit Suisse should
also weigh on the materials sector. Credit Suisse slashed its price
targets on Fortescue (FMG.AU), BHP (BHP.AU) and Rio Tinto (RIO.AU).
The outcome of the BOJ's board meeting will be in focus amid
expectations of further stimulus, while the ECB is due to meet
later Thursday. Domestic retail sales and building approvals data
are due at 0030 GMT. The S&P/ASX 200 index closed Wednesday at
4957.5. (david.rogers1@wsj.com)
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