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The Aussie market is being dragged lower by broad selling across all sectors, with the ASX 200 down by 0.76 per cent at lunch. This is enough to wipe out all of yesterday’s gains and has been triggered by a weak lead from Wall Street. American equities fell by as much 0.9 per cent after President Trump said he is ‘not yet ready’ to make a trade deal with China. The market remains sensitive to trade speculation and commentary.

Almost 8 in every 10 stocks on the ASX are down after two hours of trade. Industrials are the worst performers mainly due to engineering group, Downer (DOW) which is down by 10 per cent.

Mining stocks are under pressure following a 1.8 per cent tumble in the iron ore price overnight. Fortescue (FMG), Rio Tinto (RIO) and BHP are all down by between 0.5 – 2.2 per cent. Keep in mind that FMG has more than doubled in value so far this year and RIO is up 32 per cent thanks to the iron ore price sitting near five-year highs.

Lynas (LYC) is the ASX 200’s best performer, surging by 10 per cent. Speculation that China could use its dominance in rare earth minerals mining against the U.S. in the ongoing trade war seems to be helping the Australian producer. Rare earth minerals are used to make phones and computers. LYC has a plant in WA.

Property website operator, Domain (DHG) is up 1.8 per cent. DHG, REA Group (REA) together with building product makers Adelaide Brighton (ABC) and Boral (BLD) have surged over the past week following the RBA flagging future rate cuts which could provide the property market a boost. The market is pricing in an 87 per cent chance of a rate cut next Tuesday which is when the central bank meets next.

Telstra (TLS) is up 0.3 per cent. The telco warned of an additional $200m in restructuring costs however has reaffirmed its broader guidance for the year.

Aristocrat Leisure (ALL) is down 2.1 per cent or 64c to $29.04. The poker machine game maker is trading ex-dividend today for its 22c per share distribution (100 per cent franked).

No major economic data is due for release today.

1.8bn shares have changed hands so far today worth $2.7bn. 387 stocks are up, 615 are down and 360 remain unchanged.

Published by CommSec