daytrading sep 3 afternoon

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    Thanks Endless.

    Half-time round-up:

    Australian shares reversed early losses this morning as China shrugged off weak manufacturing news and investors ignored soft domestic economic data.

    At lunchtime the ASX 200 was up 15 points or 0.4% at 4331 after earlier hitting its lowest level in more than two weeks at 4287. Gold was the pick of the sectors this morning, rising 3.4%, ahead of IT +1.3% and property trusts +1.2%. The financials and materials sectors were little changed as a host of companies, including market heavyweight BHP, traded without their dividends.

    The market began to recover as the Shanghai Composite turned positive despite the first contraction in an official manufacturing gauge in nine months. Momentum built after the 12.30pm release of the final reading of HSBC's private manufacturing PMI, which dropped to its lowest level since March 2009. Shanghai was lately up 0.61%, Hong Kong's Hang Seng ahead 0.39% and Japan's Nikkei off 0.39%. Dow futures were recently 27 points or 0.2% in the red ahead of tonight's Labor Day share market holiday.

    A heavy schedule of economic news brought little cheer this morning, with retail sales, company profits, manufacturing and job ads all declining and inflation rising sharply. Retail spending dropped 0.8% in July, company gross operating profits 0.6% over the June quarter and job ads 2.3% last month. The AIG/PwC Performance of Manufacturing Index improved five points to 45.3 in August but remained well below the 50-point level that indicates expansion. The TDS-MI inflation gauge rose 0.6% last month - its biggest jump since March 2011.

    "Retail spending surprised heavily on the downside," Moody's Economy.com analyst Katrina Ell told Fairfax. "Helped by carbon tax compensation, we saw green shoots of a recovery in spending in June but this has not flowed through to July. Until there is a sustained improvement in consumer sentiment, retail spending will keep disappointing. Consumers are stubbornly cautious, particularly about household finances and future economic conditions."

    Crude oil futures eased 29 cents this morning to US$96.27 a barrel. Spot gold was $3.50 weaker at US$1,689.10 an ounce. The dollar was buying $US1.026.


    Looks like investors here and in China are betting that the manufacturing downturn is so severe that the central bank will have to cut again. US futures have been improving since Shanghai turned positive. Congrats to holders of PEX and commiserations to holders of PCL and FAR. There were opportunities in all three this morning. I traded the latter two twice each for three wins and one break-even.
 
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