July Trade Deficit, Stocks Fall

123jump.com Staff
04 Sep, 2008
New York City

Stocks in Australia fell after it reported a trade deficit in July, surprising the most analysts. The ASX 200 index fell 1.6% or 80.50 too 4,979.50. The Australian Bureau of Statistics reported today that trade deficit in July was A$34 million or A$717 million ($595 million) on a seasonally adjusted basis after trade balance in June was revised to a surplus of A$351 million.

[R]3:00AM New York, 7:00PMm Sydney- Australia’s reported a trade deficit in July after June trade balance was revised to a higher surplus.[/R]

Stocks in Australia fell in today’s trading as worries that demand for commodities may fall. Australia recorded a surprise trade deficit in July.

Market Sentiment

In Sydney trading ASX 200 fell 1.59% or 80.5 to 4,979.50.

Of the 200 ASX 200 stocks 42 rose, 150 declined, and 8 were unchanged. Ansell Ltd. led advancers in the index shares with a rise of 6.12% followed by AWB Ltd. increasing 4.04%.

Trade Deficit in July of $34 Million

The Australian Bureau of Statistics reported today that the country’s trade deficit in July was A$34 million or A$717 million ($595 million) on a seasonally adjusted basis after trade balance in June was revised to a surplus of A$351 million.

The Australian dollar fell 1% to 83.2645 U.S. cents after the release of the data. The Australian dollar has lost nearly 15% in the last two months as the economy has slowed and the RBA lowered interest for the first time in the last seven years.

Exports of goods and services dropped 1% to A$22.8 billion as non-rural goods declined 4% or A$65 million and agricultural products declined 3% or A$79 million, while other goods gained 55% or A$577 million. Exports of services fell by A$8 million. Coal exports including coke and briquettes declined by 9% or A$356 million.

Exports of natural gas halted after an explosion in Apache Corp facility off the coast Western Australia in June.

Seasonally adjusted import of goods and services rose 4% to A$23.5 billion as intermediate and import of other goods advanced 12% or A$1.1 billion, while capital goods and consumption goods imports dropped 5% or A$199 million and 2% or A$85 million respectively.

The import of services jumped 1% or A$60 million. Increases in intermediate imports were leveraged by fuels and lubricants, which rose A$822 million.

Gainers & Losers

Ansell Ltd led advancers in the ASX 200 index shares with a rise of 6.12% followed by rises in AWB Limited of 4.1%, in Duet Group of 4.01%, in Crown Ltd. of 3.65%, and Healthscope Ltd. of 3.43%.

Minara Resources led decliners in the ASX 200 index shares with a fall of 18.06% followed by losses in Gunns Ltd. of 16.42%, in Riversdale Mining of 12.52%, in Mincor Resources of 11.11%, and Perilya Ltd of 10.31%.

Minara Resources and other commodity stocks fell after crude oil prices dropped to below $107 per barrel yesterday. Gold prices also slumped after gold futures for December delivery slid 0.3% to $808.20 an ounce. Sino Gold lost 6.72% and Newscrest Mining plummeted 6.46% as a result.

Energy stocks also declined. Beach Petroleum tumbled 6.40% and Nexus Energy plunged 6.34%.