daytrades august 2 afternoon

Thanks Endless. Half-time round-up:

Asian markets slumped this morning as the US debt deal did nothing for US futures and investor focus switched to recent bleak global economic data.

At lunchtime the ASX 200 was down 59 points or 1.3% at 4438, conceding most of the gains from yesterday's "relief rally". Gold, telecoms and property trusts were the only sectors to trade higher as safe havens were favoured over cyclical stocks. Financials -1.9% and materials -1.6% accounted for most of the losses.

The House of Representatives this morning passed a compromise bill to raise the US debt ceiling and avert a sovereign default. The bill will now go before the Senate for approval tonight before President Obama signs it into law.

"There are still massive problems in the US," CMC Markets analyst Ben Le Brun told Fairfax. "We're still very far from a growth scenario in the US which investors would consider a positive. [The US economy] is growing, but at the barest possible rate."

Asian markets wilted this morning as a rise in US futures following the House vote faded. Japan's Nikkei fell 1.32%, Shanghai 1.63% and Hong Kong's Hang Seng 0.58%. Dow futures were recently down 3 points.

Another morning of weak domestic economic data prefaced this afternoon's Reserve Bank rate-setting meeting. Building approvals fell for a third month and June-quarter house prices declined. Building approvals dropped 3.5% in June, surprising economists who tipped a 3% recovery from May's 7.9% fall. Capital-city house prices eased 0.1% in the June quarter, following a revised 1.1% reduction the previous quarter.

Crude oil futures rallied 11 cents this morning to US$95.18 a barrel. Spot gold was $1.90 weaker at US$1,620.40 an ounce. The dollar was buying US$1.098.


Plenty of volatility this morning, delivering good opportunities to the patient scalper. Been a busy morning at this trading desk - profits taken in the opening runs in MGX and SHL, then bounces in BND, TVN and FXJ. Holding AMP and just back into BND.