Afternoon Report Monday 22 September 2014
It was a sea of red today, with the ASX 200 erasing all but 11 points of its gains for 2014, closing down 70 points at 5,363.
The weakness came from speculation around China accepting slower growth with its economy, leading the commodities sector to sell off and iron ore limit down in Asia during the day, with BHP Billiton (BHP) closing 62c lower at $34.86 and RIO Tinto (RIO) down 154c at $60.05.
As mentioned from the previous reports, with the correlation of the current weak $A, we are experiencing selling in the banking sector with National Australia Bank (NAB) closing down 80c at $33.10 and Commonwealth Bank (CBA) down 136c at $76.45.
Although we are currently bearish the ASX200 as it is currently near our initial support levels, the lack of weakness in Asia has me concerned for the short term direction.
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