Day Trading June 1 afternoon

Thanks Zero and morning crew.


Half-time round-up:

The share market edged higher this morning as disappointing Chinese manufacturing data was partly offset by positive domestic economic news.

At 1pm EST the ASX 200 was 13 points or 0.2% ahead at 5738 after retail sales improved more than expected and private capital expenditure showed signs of recovery.

Retail sales increased 1% during April, reversing March's 0.2% decline and beating the expected 0.3% improvement. Capex increased by 0.3% during the first three months of the year, compared to a retreat of 1% over the previous quarter.

The news temporarily lifted the dollar to just below 74.5 US cents before the 11.45am EST release of Chinese factory figures. Caixin's private manufacturing gauge slid to 49.6 last month from 50.3 in April, indicating contracting activity. The result came in stark contrast to yesterday's 'official' measure, which showed steady growth. The news pushed the dollar below 74 US cents, lately buying 73.89 US cents.

Utilities was the best of the sectors, rising 1.9%. Also strong: health +1.9%, gold +1.6% and industrials +1%. Consumer staples fell 1.2%, metals & mining 1.1% and energy 0.5%. Resource stocks retreated after another rough night for bulk commodities.

"We are... staring at real weakness in the bulk commodities, with spot iron ore closing 2.5% lower at $57.02, while iron ore, steel and coking coal futures closed 3.2%, 2.4% and 2.9% lower respectively," IG strategist Chris Weston told Fairfax. "Iron ore futures look like a short sellers dream right now and the technical set-up looks about as bearish as you will see."

China's Shanghai Composite shed 0.35%, Hong Kong's Hang Seng edged up 0.34% and Japan's Nikkei put on 1.04%. Dow futures were recently ahead by 18 points or 0.1%.

Crude oil futures bounced 39 cents or 0.81% this morning to US$48.71 a barrel. Gold futures slipped $3 or 0.24% to US$1,272.40 an ounce.


No conviction in this market in either direction. Give me greed or fear over indecision. Trading: AZS came good from earlier in the week. API also grinding higher. MRD finally fessed up to what the share price has been saying all week. Of course, it's purely coincidental that the share price collapsed by more than 50% ahead of a negative announcement. With the ASX and ASIC here to defend the rights of small investors, no other explanation is possible. Cough.