Market marginally firmer on Ukraine tensions
The Australian sharemarket limped to a marginally firmer finish as fresh geopolitical tensions between Russia and Ukraine sparked demand for safe-haven bonds and ongoing iron ore weakness knocked miners.
The S&P/ASX 200 index traded in a tight range before closing 1.5 points, or 0.03 per cent, up at 5625.9 as jitters over China's falling house prices weighed on commodity markets.
Last night US data was mostly firmer but the US S&P 500 index lost 0.2 per cent as eurozone inflation data showed the region remained in the grip of deflationary forces.
On the upside the second estimate of US June-quarter GDP growth increased to 4.2 per cent from 4 per cent, pending home sales rose 3.3 per cent in July and weekly jobless claims eased, but the Kansas City Fed index fell.
In Europe Spanish inflation was minus 0.5 per cent while Belgium reported zero inflation, pointing to a 0.3 per cent rate for the entire region.
The Shanghai composite index was up 0.4 per cent at the close of the ASX as a rotation to defence and tech stocks offset property market uncertainty and fears of buying dilution from new listings weighed on sentiment.
"The Chinese consumer remains distinctly unimpressed by the state of the economy, and by extension, their job prospects and family finances," Westpac economist Huw McKay said after the release of the Westpac MNI consumer sentiment survey.
He said the household sector remained "an anxious group, looking over their shoulders at a weakening housing market" and worrying about the employment outlook as construction growth "wallows at low levels".
In Tokyo the Nikkei index slipped 0.2 per cent following a batch of dismal data.
Japanese household spending slumped 5.9 per cent in July, retail sales dropped 0.5 per cent and industrial production rose just 0.2 per cent.
The Australian dollar eased US0.1¢ to US93.50¢ and government 10-year yields were steady at 3.293 per cent following the 2 point drop in US 10-years to 2.33 per cent.
Spot iron ore fell one per cent to $US87.30 a tonne, just $US1 above post-GFC lows, while Dalian iron ore futures firmed per cent today.
Copper fell 0.8 per cent to $US6960 a tonne and gold firmed $US2 to $US1288an ounce.
Markets around the world have reacted cautiously to a potential escalation of conflict between Ukraine and Russia, while iron ore prices fell for a ninth consecutive day, hurting the local materials sector, Commsec market analyst Steven Daghlian said.
"Tensions in Ukraine have held things back a bit," he said.
Friday's flat session left the market slightly lower for the week, and also for the month.
Mr Daghlian said the mining and retail sectors were the main anchors on the market on Friday.
BHP shares fell 21 cents to $36.67, Rio Tinto dropped 43 cents to $62.63, while Fortescue Metals edged three cents higher to $4.17.
Woolworths fell 79 cents to $36.16 after disappointing investors with its $2.45 billion annual profit.
Coles owner Wesfarmers also sank, losing $1.35 to $43.31 after going ex-dividend.
Qantas continued its climb after making a $2.8 billion loss, adding 8.5 cents, or 6.1 per cent, to $1.47.Virgin Australia lifted one cent to 41.5 cents despite making an annual loss of $356 million.
The big four banks all finished higher, with NAB leading the way after said it will float its US subsidiary and focus on its core Australian and New Zealand operations.
It gained 43 cents to $35.20, ANZ added six cents to $33.43, Commonwealth rose 18 cents to $81.32 and Westpac increased three cents to $35.04.
The broader All Ordinaries index was up 3.3 points, or 0.06 per cent, at 5,624.6 points.
The September share price index futures contract was up four points at 5,613 points, with 23,211 contracts traded.
National turnover was 2.4 billion securities worth $7.5 billion.
