daytrades june 6 afternoon

Thanks Tweets. Half-time round-up:

Shares are lower for a fourth day amid a regional pullback and early signs of a slowdown in the local economy.

At lunchtime the ASX 200 was off 20 points or 0.45% at 4562 after earlier hitting its lowest level since mid-March. All sectors except the defensive utilities sector (+0.3%) were trading lower, with blue chips (-0.3%) outperforming small caps (-1%).

"There's no escape route today," Bill Chatterton, RBS Morgans' director of equities, told Fairfax. "It's not dramatically down, but we're in line with the US. I don't see any great, dramatic turnaround today."

Japan's Nikkei index slumped 0.94% in morning trade. Several other Asian markets, including Shanghai and Hong Kong, were closed for holidays. Dow futures were recently at -1.

The odds on near-term interest rate rises diminished as this morning's local reports showed inflation easing and job ads falling sharply. The annual rate of consumer inflation slowed from 3.6% to 3.3% last month but remained outside the Reserve Bank's target band of 2 - 3%. Job adverts last month suffered their biggest fall in more than two years. The ANZ ads index slumped 6.5%, following a revised 0.4% drop in April.

"Coming on the back of the less-than-impressive unemployment data released for April, the ANZ survey is concerning and hints that the once-robust labour market is cooling," Arab Bank Australia treasury dealer David Scutt told Fairfax. "Seasonal influences or not, this survey and the official statistical release have surprised on the downside over the past month."

Crude oil futures dropped 44 cents this morning to US $100.13 a barrel. Spot gold was $2.60 stronger at US $1,544.60 an ounce. The dollar was buying US $1.0745.


Disturbing how many new 52-week lows there were this morning. That suggests I may be over-optimistic in hoping for a short-term bottom to this pullback this week. There's not enough movement in the mid-caps just now to justify trades. I've been in and out of AMP, MND, DCG and TAH this morning. Incidentally, the market depth in the latter is as dishonest as any I can recall, with the big money shoving it wherever they choose. Also had a dabble in DJS at the $4 mark purely for any intraday bounce.