daytrading july 11 afternoon

Thanks Endless for the morning launch and thanks to all the contributors to the interesting exchange about market conditions.

Half-time round-up:

Australian shares touched a two-week low this morning before paring losses as Shanghai opened higher and a report showed a pick-up in consumer confidence.

At lunchtime the ASX 200 was down one point or less than 0.1% at 4096 and within reach of its fifth straight loss. A regional benchmark, the MSCI Asia Pacific Index, was also weaker and on track for a fifth decline.

Energy stocks -0.9%, industrials -0.7% and health -0.7% were the biggest drags on the index. Small caps were also notably weak, with the Small Ordinaries falling 0.5%, compared to a 0.1% rise in the S&P/ASX 20. The defensive telecoms +0.9% and consumer staples +0.7% were the pick of the morning's advances.

Asian markets were mixed, with the Shanghai Composite taking advantage of the absence of economic news to claw back some of its recent losses. Japan's Nikkei fell 0.37%, Shanghai rallied 0.08% and Hong Kong's Hang Seng lost 0.25%. Dow futures were recently up one point.

"[A] lack of clarity in the follow-up Eurogroup meeting, as well as mixed data globally, has been weighing on investor sentiment, keeping risky assets in check," strategists at Barclays Capital told MarketWatch.

The morning's economic news was mixed, with an improvement in consumer confidence partly offset by a decline in home loans. The WBC/MI index of consumer sentiment rose 3.7% this month to 99.1, extending June's 0.3% increase. Meanwhile, home loan approvals fell 1.2% in May.

Crude oil futures recovered 32 cents this morning to US$84.38 a barrel. Spot gold was $8.10 firmer at US$1,574.60 an ounce. The dollar was buying $US1.021.


Sniff of a turn in the market? Oil and gold both doing better this morning and US futures are well off their low. Still a tough morning in the trenches, with opportunities at a premium. EVN was my only purchase thus far when it reached the mid-May support. Feeling more optimistic about recent purchases in BBG and CSR.