daytrading april 11 afternoon

Thanks Endless.

Half-time round-up:

The share market hit a two-and-a-half-week high this morning before paring gains after an unexpected jump in unemployment.

At lunchtime the ASX 200 was 31 points or 0.6% higher at 4999 after touching an early high of 5012. Gains in health stocks +1.2%, financials +1.1% and consumer discretionary +1.1% helped offset a soft morning for the resource sector following overnight weakness in metals. Gold stocks slid 2.1% and metals & mining 0.9%.

The index wavered following the 11.30am EST release of disappointing March jobs figures as traders weighed the improved prospects for further Reserve Bank cuts to the cash rate against the implications for consumer stocks and other employment-sensitive sectors. The economy lost 36,100 positions last month, pushing the unemployment rate to 5.6% from 5.4%. Economists had predicted a much smaller decline in jobs and an unchanged jobless rate.

"It's the same old labour market: too weak to stop the unemployment rate from rising in trend terms, but not so bad that the RBA feels they need to cut right away," UBS interest rate strategist Matthew Johnson told Fairfax. "Today's data and yesterday's business survey suggest the RBA will keep its easing bias unless there is a high inflation number."

Asian markets extended recent gains. Shanghai put on 0.1%, Hong Kong's Hang Seng 0.83% and Japan's Nikkei 0.83%. Dow futures were recently down six points or less than 0.1%.

Crude oil futures retreated 14 cents this morning to US$94.38 a barrel. Spot gold was $2.50 firmer at US$1,560.40 an ounce. The dollar was buying $US1.051.


The market can't make up its mind about those jobs figures: panic because of rising unemployment or cheer the prospect of more rate cuts? Not that the figures were a huge surprise. February's increase of 71,500 jobs always looked like an anomaly and 71,500 minus 36,100 still leaves half-decent growth for the two months. I'll sleep better tonight after clearing the books of two disastrous trades from last week: DTE yesterday and SYR this morning. Took a hit on DTE but a fair profit from SYR after getting it away near today's high. Squeezed a pip out of CNO. Holding RSG at break-even.