Half-time round-up:Sliding financial stocks dragged the ASX 200...

Half-time round-up:

Sliding financial stocks dragged the ASX 200 underwater after a morning of mixed economic signals.

At lunchtime the ASX 200 was down 5 points or 0.11% at 4671 as losses in the financial sector, down 0.6%, outweighed a bounce in the beaten-up mining (+0.7%), materials (+0.7%)and gold sectors (+0.6%).

In economic news, business confidence shrugged off the recent interest rate rises and hit a seven-year high last month. The NAB monthly survey rose 3 points to 19 in November, the highest since May 2002. There was a notable rise in retail and wholesale activity, which bodes well for the Christmas shopping season.

"The domestic economy continues to show significant momentum," said NAB chief economist Alan Oster. "Confidence also continues to build and forward orders are now at their highest level since late 2007. All of this is truly a remarkable outcome and one that continues to surprise."

But GDP expectations took a hit after exports missed targets in today's ABS current account figures. Net exports (exports minus imports) will slash 1.8% from GDP when the national accounts are released on December 16. Economists had expected net exports to cut just 0.3% from GDP.

Asian markets retreated. Japan's Nikkei, which has run hard this month, slipped 0.53%, Shanghai was off 0.55% and Hong Kong's Hang Seng 0.08%. Dow futures were a mildly bullish +25.

Crude oil futures recovered from a two-month low, rising nearly 40 cents this morning to $74.32 a barrel. The spot gold price also bounced, rising $10 this morning to $1,167.90 an ounce.


The recent weakness offered a couple of swing trade opportunities this morning. I caught APN near its lows and recently added MPO after the buying support strengthened considerably.