Thanks Tweets. Half-time round-up:Shares kicked higher this...

Thanks Tweets. Half-time round-up:

Shares kicked higher this morning, reversing yesterday's loss, but pared gains after China's economic report showed slower industrial growth than expected and inflation barely moderating.

At lunchtime the ASX 200 was up 34 points or 0.7% at 4760 but more than 15 points off the morning peak of 4778. All sectors were trading higher, with the biggest gains coming in health +1.3%, metals & mining +1.1% and materials +1.1%.

The financial sector was up 0.3% after CBA reported Q3 earnings of $1.7 billion. Consumer discretionary stocks rallied 0.7% after David Jones and Myer re-affirmed their profit forecasts. Both companies reported improving sales in recent months.

In a sign of improving risk appetite, small companies out-performed blue chips. The Smalls Ords was recently ahead 1%, compared to a 0.6% gain in the ASX 20.

Key Asian markets turned lower after China's monthly economic update, released at noon AEST, showed consumer inflation falling just 0.1% to 5.3% and industrial output slightly weaker than expected at +13.4% versus economists' expectations for a rise of 14.5%. Wholesale inflation at +6.8% was weaker than the 7.3% rise tipped by analysts.

Shanghai was recently down 0.46% and Hong Kong's Hang Seng off 0.21%. Japan's Nikkei was closed for lunch after putting on 0.5% in morning trade ahead of the Chinese data. Dow futures were recently at +6 but retreating from higher levels.

The Australian dollar moderated early gains after the release of the Chinese data, recently buying US $1.0843. Gold and silver extended gains this morning. Spot gold rallied $6.60 to US $1,522.20 an ounce. Spot silver advanced 49 cents to US $38.96. Crude oil futures inched 8 cents higher to US $103.65 a barrel.


A small decline in Chinese consumer inflation but not as much as the market wanted. Wholesale inflation was better than expected, but further interest rate rises seem likely - a negative for demand for Australian raw materials. Been another solid morning at this trading desk - traded bounces in FRG, BYR and BSL. Recently added RHM for any arvo recovery.