Day Trading June 6 afternoon

Thanks Zero and morning crew.


Half-time round-up:

The share market slumped towards last week's three-month low as soft export and investment data dampened expectations for tomorrow's GDP update.

The ASX 200 was on course for a second straight loss by the halfway mark of the session, declining 64 points or 1.1% to 5691. The index last week bottomed at 5680, its lowest level since the start of March.

The rout this morning left no sector ahead. Utilities led the rout, losing 3%, followed by energy -1.6%, health -1.2% and financials -1.1%. Gold was the best of the sectors just under break-even.

Analysts revised their first-quarter GDP predictions lower after reports this morning showed the current account balance narrowed less than expected and investment spending declined. The dollar dropped a third of a cent, lately buying 74.72 US cents.

The Reserve Bank met this morning and is widely expected to leave the cash rate on hold when it releases its announcement at 2.30pm EST. However, some central bank watchers predict recent weak economic data may prompt the bank to pave the way towards another rate cut.

"The overall picture is one of sub-par growth running well below that assumed by the RBA and in the budget," AMP chief economist Shane Oliver told Fairfax. "In our view, this all points to the rising risk of another interest rate cut."

A mixed morning in Asia saw China's Shanghai Composite ease 0.05%, Hong Kong's Hang Seng rise 0.35% and Japan's Nikkei shed 0.72%. Dow futures were recently down 13 points or 0.06%.

Crude oil futures fell another 36 cents or 0.76% this morning to US$47.04 a barrel. Gold futures improved $4.30 or 0.34% to US$1,287 an ounce.


Feels very much like international money has been deserting the ASX over the last month. Shares hit hardest seem to be those exposed to apocalyptic predictions about the economy and housing market. Tax selling alone doesn't seem to account for it. An interesting time for market watchers. If we're going to blow up, I do wish we'd get on with it. Trading: got into PRL at the low, but didn't get enough for a decent return. More recently into CLQ, which is showing signs of a partial rebound. Good liquidity.