Daytrading Sep 30 afternoon

Thanks Haplo and regulars. Well done, Shants, on picking up the morning launch.

Half-time round-up:

Australian shares inched off a seven-month low this morning despite weaker-than-expected Chinese factory data and sell-offs in Hong Kong and Japan.

At lunchtime the ASX 200 was trading 12 points or 0.2% ahead at 5276 after earlier touching the index's lowest level since mid-February. A flat morning saw gains in telecoms +0.6%, health +0.6%, consumer discretionary +0.6% and financials +0.4% outweigh declines in consumer staples -0.3%, industrials -0.2% and metals & mining -0.1%.

The market gave a muted reaction to news that the final version of HSBC's manufacturing PMI for China came in at 50.2 this month, weaker than the preliminary reading of 50.5. Economists said an increase in exports helped calm any disappointment in the headline number, which was the same in August. Back home, private sector credit figures for last month fell just short of expectations.

China's Shanghai Composite brushed off the data with a rise of 0.27%. Hong Kong's Hang Seng dropped sharply for a second day following weekend clashes between police and protesters, lately down 1.19%. Japan's Nikkei skidded 1.48% following news of a decline in industrial production, offsetting a rise in retail sales and fall in unemployment. Dow futures were recently off six points or less than 0.1%.

“Markets are reasonably jittery at the moment because, despite having pulled back a little, they’re still quite elevated,” Mark Lister, head of private wealth research at Craigs Investment Partners in New Zealand, told Bloomberg. “In 30 days you’ve got QE done and dusted and so we’re at a bit of a turning point for the market and people are a little nervy. Things that come out of left field like the Hong Kong protests or conflict in Ukraine put people on the back foot.”

Crude oil futures fell 23 cents this morning to US$94.34 a barrel. Spot gold was $1 firmer at US$1,216.90 an ounce. The dollar was buying 87.39 US cents.


A few hints this morning that the recent sell-off may be nearing exhaustion point? The Chinese data offered an excuse to sell, but the market has gone up. The dollar also held pretty steady. Stiff falls in Hong Kong and Japan are having little impact. Of course, much depends on the US, but perhaps there's a glimmer of hope for the first time in a few weeks. Trading: slow morning here. Got half a wage out of LMB. Um, that's it.