Morning Market Summary

Materials underpinned the market, although they appeared to suffer from profit taking after Chinalco took up its Rio Tinto rights. BHP Billiton closed up 1.2% at $34.30 after hitting $34.65 and Rio Tinto finished up 0.3% at $51.75 after hitting $52.69. Gold stocks performed well, with Newcrest 3.0% to $31.20 and Lihir up 1.7% to $2.98 after spot gold rose about US$20 to US$940.50, helped by China's call for debate on a reserve currency. But energy stocks dragged on the market, with Origin Energy down 2.7% to $13.91 and Woodside down 1.9% to $41.96, after Nymex crude oil fell US$0.58 to US$69.31 on a bigger-than-expected fall in U.S. inventory.

Banks mostly lost ground after outperforming recently, with Commonwealth Bank down 1.8% at $37.42, Westpac down 0.5% to $19.58 and ANZ down 0.7% to $16.13. However, the financials sector was underpinned by a bounce in property trusts, with Westfield rising 2.7% at $11.25 and Stockland up 4.2% at $3.20 after their U.S. peers bounced overnight. Also outperforming, were National Australia Bank, up 0.7% to $21.85, QBE Insurance, up 0.9% at $19.86 and Macquarie Group, up 1.5% at $38.00. Industrials were dragged down by Brambles, down 1.5% to $5.79, Macquarie Infrastructure down 4.3% at $1.34 and Macquarie Airports, down 2.3% to $2.15.

The Australian dollar was marginally stronger in Asian trade late Thursday as support provided by stronger equities performance was eroded by a wider-than-expected blowout in the trade deficit. The currency is now close to the middle of the recent range it has held in past weeks and is expected to tread water ahead of the release of the U.S. non-farm payrolls data for June later Thursday. At 0605 GMT, the Australian dollar was quoted at US$0.8037, from US$0.8035 late Wednesday.