Daytrading August 11 afternoon

Thanks glitter girl Brit (you're too modest, by the way).


Half-time round-up:

The share market turned sharply lower this morning after news that China devalued its currency triggered a sell-off in the Australian dollar and commodity prices.

At lunchtime the ASX 200 was 38 points or 0.7% weaker at 5472 and flirting with its lowest close in six weeks. The market surrendered early gains after the dollar tumbled roughly a cent after the People's Bank of China announced it was reducing by a record amount the level that the yuan is allowed to trade against the greenback. The Australian dollar was lately buying 73.15 US cents. Read more here.

"The devaluing of the yuan generated a rush of US dollar buying across the region and the Aussie was collateral damage in that," Westpac senior currency strategist Sean Callow told Fairfax. "It seems the export numbers over the weekend were the final straw for the currency being kept steady as Chinese authorities try to promote stability."

The Chinese move also weighed on dollar-denominated commodity prices. Crude oil futures slipped 44 cents to US$44.52 a barrel. Spot gold fell almost $10 before paring its loss to $5.80 at US$1,098.30 an ounce.

Gains in Australian resource stocks were out-weighed by falls elsewhere. While gold stocks rallied 2.8%, metals & mining 2% and energy 1%, the health sector slumped 1.7%, industrials 1.5% and financials 1.3%.

China's Shanghai Composite rose 0.19% and Hong Kong's Hang Seng 1.1%. Japan's Nikkei declined 0.23%. Dow futures were recently off 82 points or almost 0.5%.


Didn't see that Chinese move coming. Pulled the rug right out from under the ASX as money poured back into the greenback and away from assets exposed to the currency downside, ie, Australian shares. US equity futures don't like the news, either. Trading: solid, unspectacular morning thanks to a part-fill from the low in TAS and the initial bounce in PVD. Was at the right price level for the pullback in BUX but didn't get an entry. Yah boo sucks.