daytrading april 24 afternoon

Thanks Endless.

Half-time round-up:

The promise of a cash rate cut next week has the Australian share market on track for a new eight-month closing high despite a mixed morning in Asia.

At lunchtime the ASX 200 was up 10 points or 0.2% at 4363, within reach of last week's closing high of 4368, the index's best result since early August. Gold was the worst of the sectors, skidding 2.8% after Newcrest cut its production forecasts. Financials rose 0.8% as sectors best positioned to benefit from interest rate cuts led the rally after the quarterly inflation report came in well below the Reserve Bank's target range.

Consumer prices increased an anemic 0.1% last quarter for an annual rate of 1.6%. The Reserve Bank has previously stated its target band for inflation is 2-3%. The dollar dropped following the 11.30am EST release of the data, falling around half a cent to US$1.0278.

"We think the May rate cut is pretty much done and dusted now," RBC Capital Market economist Michael Turner told Fairfax. "Next month is almost a given and the question is whether the RBA follows up with another cut in June."

Asian markets traded mixed following sharp overnight falls in Europe and the US. Japan's Nikkei fell 0.37%, Shanghai rallied 1% and Hong Kong's Hang Seng put on 0.34%. Dow futures were recently up 25 points or 0.2%.

Crude oil futures rallied nine cents this morning to US$103.19 a barrel. Spot gold was $2.60 weaker at US$1,636.70 an ounce.


No excuse now for the Reserve Bank to keep rates steady. As others here have suggested, the central bank has under-estimated the strains in the broader economy and will now have to play catch-up. Anticipation for rate cuts should support the ASX for the next couple of months. Been a good morning at this trading desk. A big win in MBN, which like PLA a few weeks ago had been sold down so far that it only took a bit of short-covering to fly. I'll hold so long as the momentum continues. PDN was another good result this morning. Jury still out on a speculator in COK.