Day Trading Pre Open - 23 October 2018

Good Morning Fellow Traders,

Thanks @Quantum Torus @Ravgnome and AM Loungers. Our thoughts are with @ShibbyUp who is grieving the recent loss of his Father.

Banks and industrials dragged the Australian sharemarket into the red as the Federal Government faced a hung parliament and US President Donald Trump stoked trade-war fears.

The S&P-ASX 200 index dropped to a 0.8 per cent loss in early trade but rallied along with soaring Chinese stocks to a 0.3 per cent loss to regain support above the 5900 level.

It slipped again to close down 34.6 points, or 0.58 per cent, at 5904.9 despite a surge of confidence in China inspired by President Xi Jinping’s vow of “unwavering” support for non-state firms over the weekend.

The banks struggled amid warnings east coast house prices could fall 30 per cent over the next two years.

Concerns about the global fallout from possible sanctions against Saudi Arabia for the admitted killing of journalist Jamal Khashoggi was another factor keeping investors on edge.

The Shanghai composite index surged to settle up 4 per cent at the close of the ASX, with sentiment also boosted by a People’s Bank of China cash injection into the economy and a pledge of a hefty households’ tax-cut next year.
But other Asian markets remained on the back-foot after Larry Kudlow, Mr Trump’s top economic adviser, accused China of refusing to engage on trade issues and Mr Trump said he was not ready to back-down

The Australian dollar was little changed at US71.10¢ as soft US housing data on Friday cast some doubts over the US Federal Reserve rate-rise expectations.

US existing homes sales fell 3.4 per cent, with all price brackets weakening in a sign that 30-year mortgage rates above 5 per cent for the first time in seven years were starting to bite.
Government 10-year bond yields rose 2.1 points to 2.703 per cent and US 10-years were up 4 points at 3.21 per cent despite the soft housing data with analysts expecting the Fed to drive rates higher.

But Commonwealth Bank’s Business Sales Indicator showed domestic consumers were moderating their spending habits, with September’s figures rising by 0.2 per cent, the weakest monthly increase in 16 months.

“Even though business conditions are just below record highs, business confidence remains subdued potentially due to ongoing political uncertainty and US-China trade concerns, weighing on business services-related spending,” CommSec Senior Economist Ryan Felsman said.

The S&P 500 and Dow slipped in choppy trading on Monday following losses in energy and financial stocks, and as caution grew ahead of a slew of earnings this week.

The Dow Jones Industrial Average fell 126.86 points, or 0.5 percent, to 25,317.48, the S&P 500 lost 11.9 points, or 0.43 percent, to 2,755.88 and the Nasdaq Composite added 19.60 points, or 0.26 percent, to 7,468.63.

Source: Netwealth Morning Business Roundup

Eggs Benny with Ham and Onion Jam this morning with your Coffee.




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