Daytrading January 25 afternoon

Thanks Brit and morning crew. Happy Rabbie Burns Day - anyone for haggis? No? Anyone? [Sound of distant crickets...]


Half-time round-up:

Energy stocks drove the share market towards its first three-day rally of the year amid optimism central banks will support world financial markets this week.

At 1pm EST the ASX 200 was 67 points or 1.4% ahead at 4984 with the energy sector +2.9% and financials +2.1% setting the pace. The benchmark index has bounced more than 140 points since last Wednesday's two-and-a-half-year closing low.

The gains followed a strong end to last week in Europe and the US as traders anticipated further support from the world's central banks this week. European Central Bank President Mario Draghi is due to deliver a speech in Germany overnight, the US Federal Reserve releases its first policy announcement of 2016 on Thursday morning and the Bank of Japan follows suit on Friday.

“Given the depression in the markets, there’s scope for the market to add to Friday’s gains," Michael McCarthy, chief strategist at CMC Markets, told Bloomberg. "We’ve got a very eventful week, with the BOJ and Fed meetings, so there’s a lot for investors to react to. Volatility is likely to continue.”

Asian markets extended last week's gains. China's Shanghai Composite gained 0.82%, Hong Kong's Hang Seng 1.48% and Japan's Nikkei 0.42%. Dow futures were recently down 37 points or 0.23%.

Crude oil futures eased three cents this morning to US$32.17 a barrel. Spot gold was $2.40 firmer at US$1,100.40 an ounce. The dollar was buying 69.84 US cents.


The mood on world markets is much improved over the last few sessions. May it survive the Australia Day break. No evidence in the trading action so far today that traders are considering taking money off the table as a precaution. Trading: I came into the session with some repair work to be done after a dog of a session on Friday. Expected losses in weekend holds in IPL and EPD and was content to use the opening bounces to get out with smaller losses than were on offer on Friday. Earned back some with several wins in SBM and TFC. Still holding SRT.