MARKET COMMENT: S&P/ASX 200 Down 0.3% On Commodity Prices, Ex-Divs

2340 GMT [Dow Jones] Australia's S&P/ASX 200 is down 0.3% as resources stocks including BHP (BHP.AU), Rio Tinto (RIO.AU), Fortescue (FMG.AU) and Oil Search (OSH.AU) are down 1.2%-2.7% on commodity weakness and with ex-dividend falls Monday worth about 11 index points. Strength in high-yield and defensive stocks is limiting the decline, with ANZ (ANZ.AU), NAB (NAB.AU), Wesfarmers (WES.AU), CSL (CSL.AU), Westfield (WDC.AU), QBE (QBE.AU), Macquarie (MQG.AU) and Goodman Group (GMG.AU) up 0.4%-1.1%. "Investors are now likely to stand back and assess the extent of any impact that fiscal tightening in the U.S. and the Italian election result have on world economic growth over coming months," says CMC Markets chief market analyst Ric Spooner. He expects the Reserve Bank of Australia to be in a wait-and-see mode, leaving interest rates unchanged at Tuesday's board meeting. On a technical basis, CMC's Mr. Spooner cautions that the S&P/ASX 200 is in the early stages of a possible double top pattern. ([e-mail])

 
Contact us in Singapore. 65 64154 140; [e-mail] 
 
 

Subscribe to WSJ: http://online.wsj.com?mod=djnwires