Afternoon traders.Half-time report: Australian shares tumbled...

Afternoon traders.

Half-time report: Australian shares tumbled this morning as disappointing local company news compounded heavy falls on overseas markets last night. The ASX 200 was down 110 points or 2.8% at 3745 at lunchtime after RIO slid more than 11 per cent on speculation of a rights issue. A profit warning from LEI and a credit ratings downgrade for FXJ added to market woes.

Asian markets matched local falls. The Nikkei was down 2.55% and the Hang Seng off 2.75%. US futures were recently a few points lower.

Volatility offers opportunity and this has been a great morning for bounce trading. Successful scalps closed in MMG, GNS, AWC and KZL. Positions in OMH and FMG currently at break-even/marginally profitable and a second stab at GNS is underwater. Going to be a good day regardless of how the latter work out.

Good luck to all this arvo. The market should claw back a few points from here. But will it?