MARKET COMMENT: S&P/ASX 200 Flat Amid Mixed Offshore Data

2356 GMT [Dow Jones] Australia's S&P/ASX 200 is flat in mixed trading Monday as disappointing Chinese economic data released over the weekend is offsetting Friday's stronger-than-expected U.S. jobs data. BHP (BHP.AU), Rio Tinto (RIO.AU) and Fortescue (FMG.AU) are down 1.0%-1.8%, while ANZ (ANZ.AU), NAB (NAB.AU), Woodside (WPL.AU), News Corp (NWS.AU), Macquarie (MQG.AU) and Coca-Cola Amatil (CCL.AU) are up 0.7%-2.7%. CSR (CSR.AU) falls 4.0% after slashing annual profit guidance following a review of its Viridian glass business. "It's too early to assume a weakening trend in China's domestic economy," says CMC Markets chief market analyst Ric Spooner. "While retail sales growth was weaker than expected, the impact of the New Year means it's prudent not to assume it's a definite indication of a trend towards lower growth. However, investors will not be inclined to ignore these figures altogether. Lower figures in months to come would frank an outlook for softening domestic spending growth in response to higher food prices in China." He says the S&P/ASX 200 would need a clear move above last week's high at 5135.7 to indicate that the uptrend is resuming, and a break of technical support around 5045 would indicate that a much awaited correction is underway. Holidays in Victoria state are making for a quiet start to the week. ([e-mail])

 
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