Thanks Oscar and morning crew.
Half-time round-up:
The share market's winning run came under pressure as traders cashed in on seven days of gains.
The ASX 200 fell back from a seven-month high as a broad sell-off sent the index down 52 points or 0.8 per cent to 6233. A bout of profit-taking seemed the likeliest explanation in the absence of obvious catalysts following a night of modest gains on Wall Street and minimal changes on commodity markets. Every sector flashed red this morning, with I.T. the best of the bunch with a decline of 0.1 per cent, and energy the biggest loser with a drop of 1.7 per cent.
Inghams Group took the heaviest hit after TPG Capital put 50 million shares up for sale in a block trade. Shares in the chicken producer slumped 7.9 per cent to $4.08, a long way below the TPG offer price of $4.28. Harvey Norman was another notable decliner, losing 3.5 per cent as it traded without its dividend.
At the other end of the market, Syrah Resources jumped 13.9 per cent after beating first-quarter production guidance for its Balama graphite mine in Mozambique. Graincorp rallied 2.9 per cent after announcing plans to spin off and list its malting business. Bargain-hunters continued to lift the battered Exclipx Group, raising the share price 10 per cent this morning despite the collapse of the company's proposed merger with McMillan Shakespeare.
Turning to the majors, the big four banks all lost ground, ANZ falling 0.7 per cent, CBA 0.3 per cent, NAB 0.8 per cent and Westpac 0.5 per cent. The heavyweight miners' golden run also looked set for an interruption despite a rise in the iron ore price overnight, BHP dropping 1.2 per cent from an eight-year high and Rio Tinto 0.5 per cent from its strongest close since the GFC. Overnight the spot iron ore price jumped 3.5 per cent to $US93.08 a tonne.
So why the sell-off? US stocks advanced overnight but finished well off session peaks despite reports that the US and China are very close to signing a trade deal. That raised concerns that this rally may be running out of buyers. Alternatively, investors may simply have lost patience following months of reported "progress" in trade talks without any deal. The S&P 500 closed 0.21 per cent higher after dipping briefly into negative territory towards the end of the session.
The cautious mood extended into Asian markets. While China's Shanghai Composite managed a rise of 0.5 per cent, Hong Kong's Hang Seng was dead flat and Japan's Nikkei up a modest 0.2 per cent. S&P 500 futures wererecently ahead two points or 0.1 per cent.
Crude oil futures drifted lower this morning, lately off ten cents or 0.1 per cent at $US62.37 a barrel. Gold futures were steady at $US1,295.80 an ounce. The dollar was buying 71.25 US cents.
Looking ahead, the market tone over the next 24 hours is likely to be set by news from negotiations on both sides of the Atlantic - Brexit talks in London and trade talks in Washington. Wall Street has weekly unemployment claims tonight. Share trade in China is suspended tomorrow for a bank holiday. Back here, monthly construction figures are due tomorrow.
Trading: crickets and tumbleweed at this trading desk. Eerily quiet. Have a headful of flu, so not unhappy with a day when I don't have to make big decisions.Some days the key is not to break anything.
