Thanks Tweets. Half-time round-up:The big miners helped the...

Thanks Tweets. Half-time round-up:

The big miners helped the Australian share market edge higher this morning as financial stocks struggled for a third day.

At lunchtime the ASX 200 was ahead 7 points or 0.15% at 4589 and on track to finish the week roughly where it began. BHP and Rio Tinto accounted for most of the gains this morning, offset by losses among the banks, industrials and a handful of defensive sectors.

Manufacturing contracted last month as the rising dollar crimped demand. The AIG/PriceWaterhouseCoopers performance of manufacturing index fell 4.4 points to 47.3, under the 50-point level that separates contraction from expansion. The dollar rallied 8% in September to a two-year high against the greenback.

"The strength of the Australian dollar in particular, led by large rises in minerals prices, is challenging the competitive position of the sector in both the domestic and export markets," Ai Group chief executive Heather Ridout told Fairfax.

China's official purchasing managers' index released this morning outperformed expectations. The index rose from 51.7 in August to 53.8 last month, against the median economists' forecast of a reading of 52. The index has recorded expansion for the last 19 months.

The Shanghai and Hong Kong share markets were closed for public holidays but Japan's Nikkei rallied 0.89%. Dow futures were recently at a mildly bullish +32.

Crude oil futures continued this week's strong rally, adding another 53 cents this morning to reach $80.35 a barrel. The spot gold price was $1.10 stronger at $1,310.50 an ounce. The dollar was buying 96.9 U.S. cents.


Still no conviction in our market this morning. You would think the strength in U.S. futures might encourage buyers but there's little evidence of that. I spent the morning trading swings in mid-cap gold miners. Caught three bounces in PRU and one each in AVO and IAU. Should have held onto the latter. A profitable end to a pretty good week, considering the overall market went nowhere.