Daytrading Feb 5 afternoon

  1. 8,593 Posts.
    Thanks Brit and morning regulars.

    Half-time round-up:

    The share market rallied towards a six-year high this morning as disappointing Christmas sales data and soft US equity futures failed to dampen enthusiasm after ten days of exceptional gains.

    At lunchtime the ASX 200 was 16 points or 0.3% ahead at 5795 as gains in yield stocks offset weakness in miners and oil companies. The index hit 5805 yesterday, its highest level since May 2008.

    Gold stocks jumped 3.4% as traders sought havens after the European Central Bank clamped down on Greek borrowing as the new government attempts to renegotiate debt repayments. Property trusts +1.4%, telecoms +1%, health +0.7% and financials +0.6% were other standouts. Energy stocks fell 2.4%, metals & mining 1.5% and materials 1%.

    Chinese shares advanced after the People's Bank of China cut bank reserve requirements to encourage lending.  The Shanghai Composite rallied 0.8% this morning in reaction to last night's announcement, Hong Kong's Hang Seng added 0.67% and Japan's Nikkei fell 0.97%.

    “The good news out of China could help offset the bad news out of Greece,” Nader Naeimi, head of dynamic asset allocation at AMP Capital Investors, told Bloomberg. “We’d get strong market reaction to China’s move to cut reserve requirements, while the Greek situation is going to induce some volatility.”

    Back on Wall Street, the attention remained on the ECB's unexpected to decision to raise the stakes in its stand-off with the new Greek government over debt repayments. Dow futures were recently down 29 points or almost 0.2%.

    Retail sales increased by a tepid 0.2% from November despite falling fuel prices during the crucial December period, according to ABS data released this morning. Economists had predicted a rise of 0.3%.

    Crude oil futures bounced 46 cents this morning to US$48.91 a barrel. Spot gold was $7 stronger at US$1,271.50 an ounce. The dollar was buying 77.71 US cents.

    Very bullish to see the index sit on the gains of the last fortnight despite the late dive on Wall Street. China is helping but US futures look hesitant. No surprise to see energy stocks looking weak, but most bounced enough off their session lows to suggest traders saw today as a buying opportunity. Trading: I'm no fan of the NWT story, but this morning's low was deep enough to warrant a trade. Also took CTP on pullback.
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