Afternoon trading October 10

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

Half-time wrap:

The share market was on track for its longest winning run in five weeks as rate-sensitive sectors welcomed relief from soaring bond yields.

The ASX 200 rallied 81 points or 1.17% towards a fourth straight gain and a close back above 7000. The utilities, real estate investment trust and tech sectors all gained more than 2% as the yield on 10-year Australian government bonds dropped below 4.5%.

The 10-year yield was lately down nine basis points at 4.44% after hitting a 12-year peak of 4.685% last week. The retreat mirrors a similar move in the US overnight as conflict in the Middle East fuelled a move into bonds, gold and other traditional havens.

Also cheering the market were data showing growth in business costs continue to cool. Labour costs increased by 2% over the last three months, versus 3.2% the previous quarter. Purchasing costs increased by 1.8%, versus a prior reading of +2.9%.

Overnight, US stocks overcame early weakness after two Federal Reserve officials said recent rises in treasury yields had gone some way to alleviate the need to raise the target federal funds rate. The S&P 500 firmed 0.63%.



Personal trading: Wanted the retrace in JBY but missed the buy opportunity by seconds. Got some AL8. Also got one of yesterday's buys away. The other has barely traded - deadly for a trader. Didn't trust the bounces in RDN and AZS - too convenient to release results the day after a bloodbath.