Daytrading April 27 afternoon

Thanks Brit and morning crew.


Half-time round-up:

Australian shares hit a 16-week high this morning as unexpectedly soft inflation data ramped up pressure on the Reserve Bank to cut the cash rate.

At 1pm EST the ASX 200 was 50 points or 1% ahead at 5270 after earlier hitting 5281.6, the index's highest point since the first week of the year. Shares jagged higher after the 11.30am EST release of data showing the consumer price index dipped 0.2% last quarter, the index's first decline since the financial crisis. The decline in the CPI to annual growth of 1.3% shocked economists expecting a quarterly gain of 0.2% and an annual rate of 1.7%.

The dollar immediately slumped more than three-quarters of a cent to 76.58 US cents on heightened expectations that the central bank will lower the cash rate again in the months ahead.

The mid-morning news reversed the market momentum following disappointing after-market earnings news in the US from market heavyweight Apple. Nasdaq futures were last down 43.75 points or 1% and S&P 500 futures four points or 0.2% following an 8% plunge in Apple shares in after-market trade after the consumer tech giant announced iPhone sales declined for the first time since its launch.

“Significant revenue misses by the headline stocks Apple and Twitter may dampen investor confidence given the US market’s leading role,” Ric Spooner, chief market analyst at CMC Markets, told Bloomberg ahead of the inflation data.

The currency-sensitive gold sector bolted 3.6%, the Small Ords 1.5% and metals & mining 1.3%. Health care was the weakest of the sectors at +0.4%.

China's Shanghai Composite inched up 0.17% and Hong Kong's Hang Seng 0.02%. Japan's Nikkei slipped 0.58%.

Crude oil futures rallied 44 cents or 1% this morning to US$44.48 a barrel. Gold futures were $2.70 or 0.22% firmer at US$1,246.10 an ounce.


Rescued from a slow market fade by a round of dud inflation data. Institutional investors are betting that deposit rates will fall further, leaving investors nowhere to place their cash for growth except the stock market. Could see a multi-day rally on that conviction. Obviously it would help if Apple doesn't drag Wall Street too low tonight. Trading: conditions remain volatile and highly profitable if your timing is good. My timing was okay on ADV and CXO, but off the mark on AJM, so far at least. Bounce dammit.