Thanks Oscar and morning crew.Half-time round-up:A fresh...

Thanks Oscar and morning crew.


Half-time round-up:

A fresh five-year high in iron ore and the prospect of another rate cut helped propel Aussie shares to their strongest level in a week.

At the midpoint of the session, the ASX 200 was ahead 21 points or 0.3 per cent at 6669 after earlier trading as high as 6675. Shares lost momentum as the initial euphoria over the resumption of US-China trade talks continued to wear off.

A mixed market this morning saw gains in resource and health stocks outweigh declines in the banks. BHP advanced 1 per cent to an eight-year high after iron ore surged through $US120 a dry ton for the first time in five years. Rio Tinto put on 2 per cent and Fortescue 1 per cent.

Health heavyweight Cochlear rose 0.8 per cent to its highest point since September. CSL gained 0.7 per cent.

The banks lost ground ahead of this afternoon's RBA rate decision at 2.30pm Eastern Standard Time. The Reserve Bank is expected to announce a cut to the cash rate of 25 basis points to a record low 1 per cent. The banks have come under political pressure to pass on any cut in full. This morning CBA and ANZ both eased 0.4 per cent, NAB 0.3 per cent and Westpac 0.6 per cent.

A cautious rebound in gold lifted precious metals miners. Regis Resources rebounded 3.2 per cent, Saracen 2.8 per cent and Newcrest 0.3 per cent. Gold futures bounced $2.40 or 0.2 per cent this morning to $US1,391.70 an ounce.

What's hot today and what's not:

Hot today: Afterpay was the best performer on the index, rebounding sharply from two days of heavy selling. Shares in the buy-now-pay-later market leader jumped 6.1 per cent after the company announced its three founders will relinquish control of the boardroom to an independent chair and majority independent board.

A biotech minnow named Neuroscientific was the morning's other standout, surging 138 per cent after announcing a breakthrough in trials on a drug with possible applications for Alzheimer's, MS and Parkinson's Disease.

Not today: shares in satellite communications specialist Speedcast cratered 38.2 per cent to a four-year low after the company cut its earnings guidance. The company cited weak trading conditions and delays in NBN revenues as it downgraded its earnings before interest and tax to US$140 - US$150 million from prior guidance of $160 - $171 million.

Asian markets drew breath after yesterday's relief rally as trade talks resumed between China and the US. China's Shanghai Composite was unchanged and Japan's Nikkei ahead 0.1 per cent. Hong Kong's Hang Seng, which was closed yesterday, played catch-up with a rise of 1.3 percent. S&P 500 index futures were recently ahead one point or less than 0.1 per cent.

Turning to commodity markets, crude oil futures declined 26 cents or 0.4 per cent to $US58.83 a barrel.

On currency markets, the dollar was sitting just under 69.8 US cents.

Trading: yet to find much action this week. Squeezed a few hair-raising pips out of SDA, but that's the sort of trade I only take when I'm out of ideas.