daytrades may 12 afternoon

Thanks Tweets. Half-time round-up:

Corporate tax cuts, an upbeat outlook for the economy and tax breaks for savers in last night's Federal Budget helped the Australian share market push higher this morning.

At lunchtime the ASX 200 was ahead 32 points or 0.7% at 4580 but fading after key Asian markets gave up early gains. Local advances were led by the gold sector, up 3.8% after the price of gold hit a fresh all-time high overnight. Also strongly ahead were IT +1.7%, energy +1.5% and consumer staples +1.5%.

The big banks had an early boost from tax changes unveiled in the budget that make saving more attractive. Larger savings bases help banks reduce their funding costs. Also helping sentiment was news that CBA is on target for a record annual profit after posting third-quarter earnings of around $1.5 billion. However, some of the shine came off bank stocks after reports that litigation specialist IMF will fund class actions against the big banks for allegedly overcharging customers in penalty and late fees.

Rising interest rates continued to undermine demand for home loans, which fell for the sixth straight month in March. ABS data this morning showed a 3.4% seasonally adjusted decline from February. The 48,260 home loans issued was the smallest number in a month in nine years but broadly in line with expectations.

Australia's credit rating was re-affirmed this morning after last night's Federal Budget. Ratings agency Standard & Poors said Australias triple-A long-term credit rating would not change.

Most Asian markets opened higher but fell back this morning. Japan's Nikkei was up 0.52% at lunchtime but Shanghai was off 0.3% and Hong Kong's Hang Seng was recently down 0.37%. Dow futures were recently at a mildly bearish -37.

The spot gold price eased back from the overnight high, slipping $5 to $1,127.50 an ounce this morning. Crude oil futures were unchanged at $75.91 a barrel.


A low-key morning here. The action was in gold and the bigger end of town but you pretty much had to be in at the open. Annoyed at not picking the post-budget bounce in banks. Just one trade here - caught enough of the early run on NUF for a day's wage.