Afternoon trading January 10

Thanks Endless and morning crew.


Half-time round-up:

Shares took a breather following signs of a slowdown in the global surge that boosted the local market to a seven-week high.

The ASX 200 eased two points or less than 0.1% to 5776 after peaking at 5794, the index's highest point since mid-November. Market heavyweight BHP accounted for much of the weakness as it traded without its dividend, falling 4.8%. Gold stocks built on yesterday's reversal, rising 1.6%. Consumer staples dropped 2.1% following a profit warning from Costa Group. I.T. stocks shed 0.5% and financials 0.1%.

US stocks moved higher overnight but closed below their intraday peak after trade talks between the US and China ended with more platitudes than concrete evidence of a breakthrough. US officials said they would report back to Washington and seek guidance.

"Initial signs suggest that there is modest momentum building towards a narrow agreement in coming months, but that US trade hawks are fighting an intense rear-guard action to limit the scope of that agreement and keep the pressure up on Beijing," analysts at Eurasia Group wrote in a note quoted on CNBC. "If a deal is reached, it will almost certainly remain fragile and there will still be a long road ahead of the removal of US tariffs already imposed."

US futures headed south this morning as investors digested the likelihood of a drawn-out dispute between the world's largest economies. S&P 500 futures were recently down 16.5 points or 0.64%. China's Shanghai Composite gave up 0.18%, Hong Kong's Hang Seng 0.76% andJapan's Nikkei 1.49%.

Crude oil futures declined 68 cents or 1.3% this morning to US$51.68 a barrel. Gold futures improved $1.40 or 0.11%to US$1,293.40 an ounce. The dollar was buying 71.53 US cents.

 

 

Worth keeping an eye on those deteriorating US futures. The market always wants quick solutions to problems, so some disappointment over the uncertain conclusion of the trade talks seems likely. Oil and gold are indicating risk-off. Our market may not be reading the tea leaves correctly. Trading: better morning. Squeezed a couple of pips out of PUR and took ZLD just above the gap. Managed to get a couple of trades away yesterday arvo as well. Starting to feel like a trader again.