The local bourse has fallen 0.6 per cent to a 3 day low as investors again focus on the threat of a trade war. While global markets rose yesterday, Australian shares have retreated this morning after reports the Trump administration is preparing for another round of tariffs on Chinese goods worth $200 billion. The move comes after the United States imposed 25 per cent tariffs on Chinese goods worth $34 billion last Friday. Most Australian sectors are down with the exceptions of consumer discretionary, while energy and Materials are also higher on the back of higher commodity prices overnight. Miners BHP and Rio Tinto are both up by around 1.4 per cent. Major banks are down amid worries about regulatory pressures before a speech by APRA Chair Wayne Byres today.
The iron ore price futures are pointing to a fall of 1.1 per cent.
The S&P/ASX 200 index is 38 points lower at 6220 at noon. On the futures market the SPI is eyeing a fall of 39 points
Local economic news
Australian consumer confidence jumped 3.9 percent in July Its the highest reading in over four years. Possibly spurred on by income tax cuts delivered by the Federal government.
Greenland Minerals (ASX:GGG) shareholder Shenghe Resources selected two leading labs in China to visit Perth for test work on the company’s ore. Bulk sample material exported from Greenland has been delivered to Perth. Chinese technology will help develop the flotation circuit and so far results have shown improvements in mineral concentrate grade of 60 per cent. Greenland Minerals (ASX:GGG) owns 100 per cent of the large-scale Kvanefjeld Project in Greenland. It is projected to be one of the largest producers globally of key magnet metals along with by-production of uranium and zinc. Kvanefjeld is one of the world's most advanced rare earth and uranium projects. Shares in Greenland Minerals (ASX:GGG) are trading 2.63 per cent to 8c.
Best and worst performers
The best performing sector is consumer discretionary adding 0.4 per cent to 2481 points while the worst performing sector is utilities shedding 1.6 per cent to 8168 points.
The best performing stock in the S&P/ASX 200 is Flight Centre (ASX:IPH), rising 3.8 per cent to $64.61, followed by shares in Fairfax Media (ASX:FXJ) and Western Areas (ASX:WSA).
The worst performing stock in the S&P/ASX 200 is Altium (ASX:ALU), dropping 7.2 per cent to $20.49, followed by shares in Pendal Group (ASX:PDL) and Bellamys Australia (ASX:BAL).
Japan’s Nikkei has lost 1.7 per cent higher, Hong Kong’s Hang Seng has dropped almost 2 per cent and the Shanghai Composite has dropped 1.9 per cent.
Commodities and the dollar
Gold is trading at $US1251 an ounce.
One Australian dollar is buying 74.23 US cents.
Some of the most traded cryptocurrencies are trading lower. Bitcoin has fallen 5 per cent to US$6405, Ethereum is down almoat 7 per cent to US$440 and EOS has dropped about 5.3 per cent to US$7.30