Australian Trade Surplus Falls, Retail Sales Down: Stocks Slump 2.3%

Marcus Jacob
03 Aug, 2011
New York City

Stocks in Australian declined sharply following the sell-off in the U.S. and European markets. Commodities declined but gold closed at a record high. Retail sales fell 0.1% in June but rose 0.3% in the second quarter. Australian trade surplus declined to A$2.05 billion in June on flat exports.

[R]4:30 PM Sydney – Stocks in Australian declined sharply following the sell-off in the U.S. and European markets. Commodities declined but gold closed at a record high. Retail sales fell 0.1% in June but rose 0.3% in the second quarter. Australian trade surplus declined to A$2.05 billion in June on flat exports.[/R]

Stocks in Sydney trading dropped more than 2% after global markets declined sharply. The latest U.S. debt agreement brought more uncertainty of which spending cuts will be enacted in the next six months and Italy becomes the latest target of bond investors in the euro-zone.

The ASX 200 index decreased 100.80 or 2.3% to 4,332.80 and All Ordinaries index fell 2.2% or 102.80 to 4,480.30.

In trading, turnover decreased to 1.87 billion shares worth $4.7 billion and 352 shares increased, 706 decreased and 356 were unchanged.

The Australian dollar decreased to US$1.075 after global economic worries dragged the currency lower.

Australian seasonally adjusted retail sales decreased 0.1% in $20.54 billion in June from $20.57 billion in May, according to the latest data from Australian Bureau of Statistics.

Retail sales in the quarter increased 0.3% in the second quarter compared to the first quarter, matching most economists’ expectations.

Separately, the ABS reported adjusted trade surplus decreased to $2.05 billion from $2.5 billion in May. Exports were nearly unchanged in the month and imports increased 3%.

Stock Movers

Energy and miners traded higher after oil declined and gold surged $33 to $1,671 an ounce in New York trading.

BHP Billiton Ltd fell $1.42 to $40.15 and Rio Tinto decreased $2.45 to $77.60. Newcrest Mining Ltd increased 72 cents to $40.75. Aquarius Platinum Ltd dropped 4.4% or 18 cents to $3.97.

Woodside Petroleum Limited declined 2.7% or $1.02 to $37.22 and Santos Limited fell 2% or 25 cents to $12.65.

Banks closed lower after the debt problems in the U.S. and Europe lowered banks in Asia on the rising worries that the record bond yields in Italy and Spain may force another crisis in the euro-zone.

Commonwealth Bank of Australia decreased 87 cents to $48.55 and National Australian Bank decreased 77 cents to $23.20. ANZ declined 53 cents to $20.10.

Kathmandu decreased 3 cents to $1.83. Westfield Group increased 4 cents to $8.06 and Stockland fell 8 cents to $2.98.

Myer declined 2 cents to $2.23 and Chicago based fund management company controlled funds acquired 5.08% in the company between July 7 and August 1. The value investment sty le manager plans to hold the stake in the retailer for the long term.