daytrade diaries ... january 6 part 2

The Australian share market is flat at midday following a mixed lead from overseas markets with an increase in US factory orders and higher oil prices helping to lift resource stocks today.

All Ordinaries index had lost 3 points, or 0.06 per cent, to 4,936 points.

Analyst said "There's still some concern surrounding the housing market, which was what triggered the downward slide for the US economy. There are a few concerns about the direction of the near term outlook for retail sales. And we're also seeing some concerns about the direction of the dollar,"

The Australian Industry Group/Commonwealth Bank Performance of Services index eased 2.5 points in December to a read of 50. 50 is the threshold that separates expansion from contraction. A rise in interest rates is being seen as the cause of the slowdown.

ABS reports that building approvals rose 5.9% in November from the month before.

New motor vehicle sales were 15.9 per cent higher in December 2009 than a year earlier, new vehicle industry figures show. In calendar 2009 there were 937,328 passenger cars, SUVs and commercial vehicles sold, down by 7.4 per cent compared to 2008, according to Federal Chamber of Automotive Industries (FCAI) data released on Wednesday.


The Australian Chamber of Commerce and Industrys expectations for business conditions index reached a read of 65.4 in the December 2009 quarter, from 62.8 index points in September 2009 quarter.

Top airline Qantas Airways Ltd (QAN) low cost offshoot Jetstar has formed a new alliance with AirAsia. In a joint statement the companies say the alliance brings together the Asia Pacifics two leading low cost, low fare carriers and will focus on a range of major cost reduction opportunities and potential savings to the benefit of customers throughout the region. Key to the agreement is a proposed joint specification for the next generation of narrow body aircraft that will best meet the needs of the low fare customer of the future, both airlines will investigate opportunities for the joint procurement of aircraft. Qantas CEO Alan Joyce says the aviation market in Asia is a growth market, and has proven resilient over the past 12 months despite the tough operating environment, with significant growth in passenger numbers forecast in the region. Qantas shares rose 1.01 per cent to $2.99.

The best performing sector at midday is the Materials index up 62 points at 13,011.

The worst performing sector at midday is the Real Estate Investment Trust index, down 10 to 911.

Gold is trading at US$1,118.15 an ounce and the Aussie dollar is trading at 91.15 US cents.


http://www.marketwatch.com/
http://www.thebull.com.au/
http://www.news.com.au/business/