Daytrading Feb 6 afternoon

  1. 8,545 Posts.
    Many thanks Brit for manning the morning thread in Shants's absence. Permission to stand down.

    Half-time round-up:

    The dollar jumped and shares pared a 12th straight day of gains after the Reserve Bank cut its economic growth outlook and warned it expects unemployment to rise.

    At lunchtime the ASX 200 was 14 points or 0.25% ahead at 5825 but below the morning high of 5851, the index's highest point since May 2008. A gentle retreat from the session peak temporarily accelerated after the RBA reduced its GDP expectation for the year to between 1.75-2.75% from a prediction of 2-3% in November. The bank's quarterly policy statement also said it anticipates unemployment may rise to 6.5%. Read more here.

    "Growth overall is now forecast to remain at a below trend pace somewhat longer than had earlier been expected,’’ the statement said.

    The dollar rallied more than half a cent, lately buying 78.26 US cents, and several yield sectors turned negative. Property trusts were lately off 0.5% and telecoms 0.1%. Energy +1.5%, metals & mining +0.4% and health +0.5% were the best of the sectors.   

    China's Shanghai Composite dropped 0.25%, Hong Kong's Hang Seng lost 0.03% and Japan's Nikkei gained 0.81%. Dow futures were recently down two points or less than 0.1%.

    Crude oil futures cents rallied 77 cents this morning to US$51.25 a barrel. Spot gold was $2 ahead at US$1,264.70 an ounce.

    To put this rally in perspective, Fairfax reckons the XJO has never strung together 12 straight wins - never - while the All Ords last put 12 together in 1986. (The second stat has an ominous ring about it in the light of what happened the following year, but if it's a problem, it's next year's problem.) Meantime those who missed the first runs at the top/middle end can likely look forward to some juicy pullbacks in the days ahead. OFX offered easy pickings this morning - as I've suggested here previously, panics over management changes tend to dissipate quickly, no matter how important the suit standing down. MVP is higher risk but I'm in for a small dabble.
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