Afternoon trading Oct 25

Thanks Oscar and morning crew.


Half-time round-up:

Shares pared early gains as soft inflation data weighed on the dollar and weakened the argument for higher rates next year.

The ASX 200 trimmed a rise of 22 points into a gain of ten points or 0.2% at 5907 at the halfway mark after quarterly inflation came in lower than expected. The consumer price index grew 0.6% last quarter, versus expectations for a rise of 0.8%. Annual inflation was steady at 1.8%, also below expectations. The dollar responded by diving roughly half a cent as traders amended their rates outlook, lately buying 77.27 US cents. Read more here.

Gains in resource stocks were balanced by falls in rate-sensitive sectors. The metals & mining sector rallied 1.3%, materials 1.2% and energy 0.8%. Consumer staples skidded 1.4% following a poorly-received update from Wesfarmers, telecoms 1.4% and industrials 0.6%.

China's Shanghai Composite slipped 0.07%, while Hong Kong's Hang Seng put on 0.48% and Japan's Nikkei 0.04%. Dow futures were recently off 16 points or 0.07%.

Crude oil futures gave up four cents or 0.08% this morning to US$52.43 a barrel. Gold futures shed $1.30 or 0.1% to US$1,277 an ounce.


Off my game this morning - got a touch of the lurgi. Didn't trust my flu-ridden brain to make sound decisions, so watched a few going through to the keeper. There were certainly opportunities. Got a wage out of MUS and cleaned up a messy start to the week by exiting PIO and HMO. APX finally coming good.