Afternoon trading November 1

Thanks @shovel40, @Fiji1, @Patterns and morning crew.

Half-time wrap:

Australian shares rose for a second day as investors weighed positive US leads against weak economic data and a rise in bond yields after the International Monetary Fund urged the Reserve Bank to raise rates.

The ASX 200 climbed 31 points or 0.45% by mid-session. Property and mining stocks provided much of the momentum. Supermarkets and utilities dragged.

The IMF this morning used its annual report on Australia to "recommend further monetary policy tightening to ensure that inflation comes back to the target range by 2025”. The Washington-based fund advised state and federal governments to reduce infrastructure spending to assist the RBA's war on inflation.

The prospect of higher rates helped lift the yield on the 10-year Australian government bond above 5% this morning for the first time since 2011. The 10-year yield touched 5.002% before easing a fraction to 4.978%.

Building approvals unexpectedly contracted in September, according to ABS data this morning. Approvals declined by 4.6%, defying expectations for an increase of around 1.3%. A separate report showed manufacturing shrank for an eighth straight month in October.


Personal trading: Took the retrace in PGY too early. Was at the right level for IVZ but didn't get a fill before the bounce.