Stocks end modestly in the red

The local market has edged marginally lower, as investors digested earnings reports and Trump’s latest comments.

Australian stocks edged marginally lower today as investors digested the first of the half-year earnings reports, and parsed Donald Trump’s latest comments for additional policy clues.

At the close of trade the S&P/ASX 200 was 0.14 per cent weaker at 5,645.4 points, with blue chips stocks ending mixed despite a much stronger than expected set of ABS trade numbers.

The index managed to keep its head above the 5600 point level – a key support point which analysts say could sap confidence trigger a further selloff.

“The ASX 200 avoided a confidence sapping break below chart support at 5600 points, which had been threatened on Monday,” CMC Markets chief analyst Ric Spooner said.

“The market looks like consolidating again today as investors wait on the reporting season and in the absence of any overnight news to change the macro outlook.”

It came despite the ABS posted a record seasonally adjusted trade surplus of $3.5 billion in December, bursting the previously monthly record surplus of $2.24bn set in February 2009.

Meanwhile oil prices, which gained around 1.5 per cent overnight, could be drawing some attention.

“As it stands today though there seems little to necessarily inspire the buyers, although we are seeing signs that the oil market could be ready to make a push higher,” IG chief market strategist Chris Weston said.

Uncertainty continues to hang over the market as the global spotlight remains fixed on President Donald Trump’s early days in office and contentious policies, including a proposal to restrict immigration.

Australia was pulled into the frame with reports of a phone call between Mr Trump and Australian Prime Minister Malcolm Turnbull, during which the president reportedly criticised a deal agreed with former President Barack Obama in which the US would consider accepting refugees from Australia. In a tweet, Mr Trump said he would study the “dumb deal” to accept “illegal immigrants” from Australia.

Most sectors were in the red for the day, with only the materials and energy subindexes ticking slightly higher.

Banks, which had staged a recovery along with the broader market on Wednesday, were mostly lower. National Australia Bank and ANZ each gave up 0.2 per cent, to $30.40 and $29.39 respectively, while CBA edged down 0.01 per cent to $82.01. But Westpac found 0.06 per cent to $32.01.

Among mining companies, BHP Billiton was down 0.15 per cent to $27.01 per cent and Fortescue Metals Group lost 0.73 per cent to $6.76. Rio Tinto was more upbeat, adding 0.22 per cent to $67.19, and South32 grew 0.72 per cent to $2.80.

Elswhere Downer EDI had its best day on the market in nine years, after posting an 8.5 per cent rise in first-half profit and increasing its forecast for annual earnings. The engineering services group’s stock swelled 13.12 per cent to $7.07.

Investors were downbeat on Tabcorp as it posted a 28.1 per cent fall in half-year profit, weighed by pursuit of Tatts and legal costs. The wagering giant turned down 5.26 per cent to $4.50.

Telstra dropped 0.79 per cent to $5.03 after its services in some parts of Australia were downed by a fire at its Chatswood exchange in Sydney.

The Australian dollar was trading at US76.43 cents at 5pm (AEDT), its highest level in almost three months.