Daytrading August 3 afternoon

Thanks Brit and morning regulars.


Half-time round-up:

Australian shares retreated for the first time in four sessions after weak factory data resurrected questions over the Chinese economy, dampening demand for resource stocks.  

At lunchtime the ASX 200 was trading 21 points or 0.4% lower at 5678, with industrials +0.2% and consumer discretionary +0.2% the only sectors to trade ahead.

The metals & mining sector fell 1.4% after the final version of Markit's Chinese manufacturing PMI came in lower than the original reading, compounding concerns after the official government measure released over the weekend indicated zero growth last month. The final Markit PMI declined to 47.8, the index's worst reading in two years, from an initial reading of 48.2. The China Federation of Logistics and Purchasing Purchasing Managers' Index released over the weekend dropped to 50 from 50.2 in June.

“China will have several hard questions asked of it over the week, feeding into concern it’s facing a hard landing,” Evan Lucas, market strategist at IG, told Bloomberg. “We see a slightly negative start to August.”

The Shanghai Composite retreated 1.71% this morning, Hong Kong's Hang Seng 0.96% and Japan's Nikkei 0.49%. Dow futures were recently off one point or less than 0.1%.

Back home, weak job advertising data was partly offset by a mild inflation reading. Employment ads declined 0.4% last month, according to ANZ's monthly survey. Inflation ticked up 0.2% last month for a tepid annual rate of 1.6%, according to TD Securities/Melbourne Institute.

Crude oil futures contracted another 36 cents or 0.8% this morning to US$46.78 a barrel. Spot gold was $1 weaker at US$1,094.20 an ounce. The dollar was buying 73.08 US cents.


Trading: good volatility this morning to get the week off to a good start. Snagged bounces in POK, PEH, NOR and a teeny barely-worth-it one in SEA.

Threads: looking for volunteer thread launchers to open the pre-market and afternoon launches tomorrow and Wednesday while I help the RFS with the Wentworth Falls fire. The situation is obviously fluid, so either or both shifts could be cancelled if conditions improve. Fingers crossed for householders in the affected area that the worst is behind. Will update when anything changes.