Good afternoon,

Across Asia, regional markets are mostly lower this afternoon, choosing to ignore Alcoa's better-than-expected Q2 earnings result and instead focusing on Chinese comments reiterating their intention to curb property prices. The Shanghai Composite is the worst performer, down 1.9% while the Nikkei and Hang Seng are down 0.3% and 0.1% respectively. The Kospi is bucking the broader trend, up 0.1%.

In Australia, the ASX 200 is currently 0.5% weaker at 4387 having fallen well off earlier highs of 4429 as Asian markets have retreated. With the materials, energy and industrial sectors trading convincingly in negative territory, modest gains from the financials and consumer sectors have not been enough to halt the reversal which began mid morning.

Specifically, miners are under pressure over Chinese growth concerns, as well as the overnight reaction to the weekend's Chinese import numbers.

After a very strong session last week, it seems the market is just treading water. Yes Alcoa's result kicked off the earnings season on a positive note but it's going to take a lot more than one result to see a sustainable change in sentiment.

As we've often said, the next few weeks are likely to see range bound trade as markets digest offshore earnings and form a view on how the second half of the year may play out.

We also must remember that volumes are light domestically, with a lot of professionals taking time off for school holidays.

Provided by IG Markets