Weak offshore lead pulls local market down
The Australian stock market is trading lower again today on the back of the overall weakness from offshore markets.
Investors still seem to be concerned with the mixed economic data coming out of the US. The record drop in existing home sales for July (in the US) is not much of an encouragement for investors at this stage.
Locally, Suncorp Metway shares jumped on the back of higher than expected earnings report and provided some support to the financial sector.
On the other hand, Worley Parsons shares fell sharply as its 26% drop in earnings disappointed the market. The company was hit by a double whammy of a strong Aussie dollar and some project was delays. While the company has a solid pipeline of projects, its performance was affected by external factors beyond its control.
In currency markets, the Aussie dollar shed some gains against the US greenback as investors reduced their appetite for risk assets. The Aussie is also facing heavy selling pressure from the Japanese Yen as the unwinding of carry trade continues to push the Japanese Yen to a new high against the US dollar.