daytrades dec 1 afternoon

Thanks Tweets. Half-time round-up:

Australian stocks eased this morning as strength in Chinese manufacturing and weak local GDP and manufacturing data provoked little response.

At lunchtime the ASX 200 was down 10 points or 0.2% at 4573. Financials, industrials and defensive sectors retreated while resource stocks advanced.

The Australian economy slowed last quarter to its weakest pace since 2008 but avoided the contraction feared by some economists. GDP grew 0.2% in the September quarter - around half the median expectation and enough to drag the annual growth rate down from 3.1% last quarter to 2.7%.

The dollar slumped nearly half a cent following the news, recently buying 95.6 U.S. cents. However, commentators were quick to dismiss the result.

"It's nothing to worry about," ICAP economist Adam Carr told Fairfax. "We've had very strong growth over the last year. A slight moderation is in no way, shape or form a surprise. The market was talking about the possibility of getting a negative number so I don't think it has any implications for (monetary) policy."

Manufacturing activity continued to contract last month as interest rate rises and the strong dollar took a toll. The AIG/PwC Performance of Manufacturing Index eased 1.8 points to 47.6. Readings under 50 indicate contraction.

"Clearly, factors including the sustained high dollar, higher interest rates and skill shortages, together with the caution around spending on the part of business and consumers, are dampening the outlook for the sector with implications for the broader economy," Australian Industry group chief Executive Heather Ridout told Fairfax.

In contrast, Chinese manufacturing expanded for the 21st month in a row. The official manufacturing purchasing managers' index rose to 55.2 last month from 54.7 in October. The figure topped economists' expectations that the index would hold steady.

Asian markets pared early losses. Japan's Nikkei was recently up 0.01%, Shanghai off 0.3% and Hong Kong's Hang Seng down 0.15%. Dow futures were recently at -4.

Crude oil futures were 9 cents stronger this morning at $83.93 a barrel. The spot gold price rallied $4.60 to $1,388.50 an ounce.


Looks like the RBA can slap themselves on the back for a job well done. They've certainly taken the heat out of the economy. Someone remind me why that's a good thing. Back to share trading: some institutional selling into the pre-market auctions offered cheap entries in some of the mid-caps this morning, but I was mostly too slow. Grabbed EHL and HVN for one win and an exit for brokerage. Best result was NKP. Also holding a speculator in SPT at support - rebounded well yesterday but it's one of those frustrating shares that a casual observer might speculate I buy for tax-loss reasons. Never seem to turn a profit on it. A smarter man would give it up.