Caution ahead of Chinese economic news gave way to relief this morning as August data confirmed the strength of the recovery in the Asian powerhouse.
Australian shares drifted off today's high ahead of the new release bounced after the announcement. At 1 pm, the ASX 200 was 27 points or 0.6% higher at 4597. The big banks and miners fronted gains, with financial stocks rising 0.7% and miners up 1%.
China's industrial output rose 12.3% on year last month, up 1.5% from July. The rise trumped the 10.8% gain in July and was ahead of expectations of a 12.0% rise. Retail sales rose 15.4%. In other data: the consumer price index fell 1.2% on year, roughly in line with expectations for a 1.3% drop, while the producer price index fell 7.9%, matching the consensus forecast.
Asian markets swung positive upon the release of the data. Shanghai was recently up 0.97% and Hong Kong 0.48%. Japan was down 0.45% but broke for lunch ahead of the announcement. Dow futures were at -10. The spot gold price rallied to $998.90.
A dull morning here. Did well out of the early run on CMJ but the pickings have been slim since. Tiny scalp on ATQ. Exited PIO for a small loss - hate feeding cappers but have been in the trade too long for no gain and other opportunities will develop quicker. Small position taken in WPG on pullback.
Potential overnight holds: GOA looks like bouncing as the price of gold swings higher. DJS into clear air. MRM and PRG on breakout.
