Australian Investment Blog

MarketMatters traditional morning reports should be back on track tomorrow, sorry for the hiccup, plus we are excited to announce some new additions to the team very shortly.

• Yesterday, the ASX 200 teased investors on the first half hour of session, trading as high as 5753 prior to selling off aggressively and closing on its lows, down 99 points (-1.7%) at 5636.• The early sell off was sparked by SPI hedging after what appeared to be a large volume of Index Put options trading in the morning – meaning an investor bought protection against its portfolio.• Both the Banking and Resource sector contributed to most of the weakness in the ASX 200 yesterday. Westpac (WBC) was the weakest link, shedding 2.4% to $32.34, while BHP Billiton (BHP) lost 3% to $28.33.• The Australian Dollar rose after the RBA announced the anticipated no change in interest rates for June, leaving local rates at 2.00%. A surprisingly large move as no rate change was expected. • It was a choppy session in the US overnight, ending the day slightly lower. The Dow closed 28 points lower at 18,009 and the S&P 500 down 2 points at 2,109.• The ASX 200 is expected have a quiet open this morning, hovering around the previous close of 5636, however the damage done by yesterday’s 100-point sell off is likely to take time to repair.• In the commodities, Iron Ore recovered its previous loss, up 1.2% higher at US$63.02/t along with Crude Oil, up 1.8% at US$61.26/bbl.